1. Different Concept of Management Information Systems?
The concept of the MIS
has evolved over a period of time comprising many different facets of the
organizational functions. MIS
is necessity of all the organizations.
TRADITIONAL
CONCEPT OF MIS:- The
initial concept of MIS was to process data from the organization and presents
it in the form of reports as regular intervals. The system was largely capable
of handling the data from collection to processing. It was more impersonal,
requiring each individual to pick and choose the processed data and use it for
his requirements. This concept was further modified when a distinction was made
between data and information. The information is a product of an analysis
of data. This concept is
similar to a raw material and the finished product. What are needed are information and
not a mass of data. However,
the data can be analyzed in a number of ways, producing different shades and
specifications of the information as a product. It was, therefore, demanded that the
system concept should be an individual oriented, as each individual may have a
different orientation towards the information.
Traditional
Management Information System
MODIFIED
CONCEPT OF MIS:
This concept was further
modified, that the system should present information in such a form and format
that it creates an impact on its user, provoking a decision, an action or an
investigation. It was later
realized that even though such an impact was a welcome modification, some sort
of selective approach was necessary in the analysis and reporting. Hence, the concept of exception
reporting was imbibed in MIS. The concept remained valid till and to the extent
that the norm for an exception remained true and effective. Since the
environment turns competitive and is ever changing, fixation of the norm for an
exception becomes a futile exercise at least for the people in the higher
echelons of the organization. The concept was then evolved that the system
should be capable of handling a need based exception reporting. This need may be
either of an individual or a group of people. This called for keeping all data
together in such a form that it can be accessed by anybody and can be processed
to suit his needs. The concept is that the data is one but it can be viewed by
different individuals in different ways. This gave rise to the concept of
Database, and the MIS based on the database proved much more effective. The
concept of MIS gives high regard to the individual and his ability to use the
information. An MIS gives information through data analysis. While analyzing the data, it relies on
many academic disciplines. These
include the theories, principles and concepts from the Management Science,
Management Accounting, Operations Research, Organization Behavior, Engineering,
Computer Science, Psychology and Human Behavior, making the MIS more effective
and useful. These academic
disciplines are used in designing the MIS, evolving the decision support tools
for modeling and decision-making. MIS uses the concept of management
control in its design and relies heavily on the fact that the decision maker or
the manager is a human being and is a human processor of information. A
management Information System can be evolved for a specific objective if it is
evolved after systematic planning and design. It calls for an analysis of a
business, management views and policies, organization culture and the
management style. The
information should be generated in this setting and must be useful in managing
the business. This is possible only when it is conceptualized as a system with
an appropriate design. The
MIS, therefore, relies heavily on the systems theory. The systems theory offers
solution to handle the complex situations of the input and output flows. It
uses theories of communication which helps to evolve a system design capable of
handling data inputs, process, and outputs with the least possible noise or
distortion in transmitting the information from a source to a destination. It
uses the principles of System Design, viz., an open system or a closed system.
An open system of the MIS offers an ability of continuous adjustment or
correction in the system in line with the environmental changes in which the
MIS operates. Such a design helps to keep the MIS tuned with the business
management needs of the organization. The concept, therefore, is a blend of
principles, theories and practices of the Management, Information and System
giving rise to single product known as Management Information System (MIS). The
MIS is a product of a multi-disciplinary approach to the business
management. It is a product
which needs to be kept under a constant review and modification to meet the
corporate needs of the information. The MIS model of organization changes over
a time, as the business passes through several phases of developmental growth
cycle. It supports the management of business in each phase by giving the
information which is crucial in that phase. Every business has critical success
factors in each phase of growth cycle and the MIS model gives more information
on the critical success factors for decision making.
Modified Management Information System
2.
Characteristics
of Management Information System?
A management information
system has the following characteristics:
·
System
approach: The information system follows
a System’s approach. The system’s approach implies a holistic approach to the
study of the system and its performance to achieve the objective for which it
has been formed.
·
Management
oriented: For designing of MIS top-down
approach should be followed. Top-down approach suggests that the system
development starts from the determination of the management needs and overall
business objectives. Management oriented characteristic of MIS also implies
that the management actively directs the system development efforts.
·
Need
based: MIS design and development should be as per the information needs
of managers at different levels that are strategic planning level, management
control level and operational control level.
A.
Exception based: MIS should be developed on the exception based reporting
principle, which means an abnormal situation that is the maximum, minimum or
expected values vary beyond the limits. In such cases there should be exception
reporting to the decision-maker at the required level.
B.
Future oriented: Besides exception based reporting, MIS should also look at the
future. In other words MIS should not merely provide past or historical
information; rather it should provide information on the basis of projections
based on which actions may be initiated.
C.
Integrated: Integration is significant because of its ability to produce more
meaningful information. For example, in order to develop an effective
production scheduling system, it is necessary to balance such factors as:
set-up costs, work force, overtime rates, production capacity, inventory level,
capital requirements and customer services. Integration means taking a
comprehensive view of the subsystems that operate within the company.
D.
Common data flows: Because of the integration concept of MIS, there is an opportunity
to avoid duplication and redundancy in data gathering, storage and
dissemination. System designers are aware that a few key source documents
account for much of the information flow. For example, customer’s orders are
the basis for billing the customer for the goods ordered, setting up accounts
receivables, initiating production activity, sales analysis, sales forecasting
etc.
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