Show
OBJECTIVES At the end of this session, participants should be able to understand and appreciate: 1.Principles and elements of MIS INSTRUCTIONAL MATERIALS
REQUIRED READING Reading note: Management information systems BACKGROUND READING None. SPECIAL EQUIPMENT AND AIDS Overhead projector and chalkboard Session guide: Management information systemsShow EXHIBIT 1. Define and discuss what a management information system (MIS) is, and how it helps an organization. Identify elements of MIS: management, system and information (EXHIBIT 2). Each of these should be discussed individually. Management information is an important input for efficient performance of various managerial functions at different organization levels. The information system facilitates decision making. Management functions include planning, controlling and decision making. Show EXHIBIT 3 and discuss various steps in planning. Using EXHIBIT 4, discuss the basic requirements for information during the planning process, and emphasize their importance. Controlling compels events to conform to plans. It includes setting performance standards, measuring performance against those standards, and correcting deviations (EXHIBIT 5). Show EXHIBIT 6 and discuss the information requirements for the controlling function. Decision making is the core of management and aims at selecting the best alternative to achieve an objective. The decisions may be strategic, tactical or technical (EXHIBIT 7). Strategic decisions are characterized by uncertainty. They are future oriented and relate directly to planning activity. Tactical decisions cover both planning and controlling. Technical decisions pertain to implementation of specific tasks through appropriate technology. The elements of decision making include the model, criteria, constraints and optimization. A model is a quantitative-cum-qualitative description of a problem. Criteria relate to methods for achieving goals. Constraints are the limiting factors. Once the decision problem is fully described in a model, criteria stipulated and constraints identified, the decision-maker can select the best alternative. That is optimization. Show EXHIBIT 8. Define and discuss the concept of a system. Observe that modern management is based upon the systems approach, which views an organization as a system of mutually dependent variables and composed of a set of interrelated sub-systems. This interrelationship is a fundamental concept in the systems approach to management. Show EXHIBIT 9 and discuss how a system can be perceived. The basic elements of the organization include the individual, the formal and informal organization, patterns of behaviour, role perception, and the physical environment (EXHIBIT 10). Show EXHIBIT 11 and discuss the relevance of the systems approach in the design of an MIS. MIS aims at inter-relating, coordinating and integrating different sub-systems by providing information to facilitate and enhance the working of the sub-systems and achieve synergism. Show EXHIBIT 12. Define information in generic terms as well as in the context of different levels of decision making. Note that all data are not necessarily information. The value of management information lies in its content, form and timing of presentation. Discuss the role of the information system in linking different components of the organization through integration, communication and decision making. Integration aims at ensuring that different sub-systems work together towards the common goal. Coordination and integration are essential controlling mechanisms to ensure smooth functioning in the organization. Communication is a basic element of organizational structure and functioning to integrate different sub-systems at different levels to achieve organizational goals. Information is generated in the organizational structure. Show EXHIBIT 13. Information requirements are different at all levels of the organization. As information flows from bottom to top, it becomes more and more focused as a result of capsulization and concretization. In contrast, information becomes increasingly diffuse as it flows from top to bottom. Since the information system is specific to an organization, organizational structure and behaviour have to be explicitly considered in designing an MIS (EXHIBIT 14). Show EXHIBIT 15 and discuss the implications of various characteristics of the organizational structure when designing an MIS. Refer to Table 1 in the Reading note in discussing these implications. Show EXHIBIT 16 and discuss information requirements for MIS. It is important to consider carefully the information needs of the organization at different levels of the hierarchy. Strategies for determining information requirements should be discussed in the context of EXHIBIT 17. This discussion can be continued using EXHIBIT 18, in which a step-by-step strategy for determining data requirements is suggested. An MIS can be a data bank, predictive, decision making or decision taking system. Discuss each of these in the context of EXHIBIT 19. Show EXHIBIT 20 and discuss the MIS process. As already discussed earlier, the MIS design team should first establish management information needs and clearly establish the system's design objectives. The important decision making areas should be identified, and within them the management decision areas delineated. Information needs at each of these levels have to be appreciated in the context of defined roles. A crude description of the system could then be developed and subsequently refined with more precise specifications. An MIS should be based on a few databases related to different sub-systems of the organization, for efficient management of information processing, the MIS should be tested and closely monitored to ensure that all critical data are captured. Any MIS should be relevant to the individual decision-maker. It should provide up-to-date and accurate information to facilitate decision making. It should enable management to anticipate change. An MIS cannot be static in the face of the changing environment. As the environment changes, decision making changes and hence the information requirements change also (EXHIBIT 21). Show EXHIBIT 22 and discuss the six strategies determining MIS design. The organization-chart approach is based on traditional functional areas defining current organizational boundary and structure. MIS evolves on its own in a laissez faire manner in the integrate-later approach. The data-collection approach involves collection and classification of all the relevant data for future use. In the database approach, a large pool of data is collected and stored for future use. The top-down approach involves defining the information needs for successive layers of management. The total-system approach involves collection, storage and processing of data within the total system. EXHIBIT 1 MANAGEMENT INFORMATION SYSTEMS Definition "An integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computerized and manual procedures; models for analysis, planning, control and decision making; and a database." Based on: Davis, G.B. 1985. MIS: Conceptual Foundations. Structure and Development. 2nd ed. New York, NY: McGraw-Hill. MIS principal concerns Facilitate decision making by supplying the information needed in an up-to-date and accurate form · to the people who need it EXHIBIT 2
EXHIBIT 3
Source: Kumar, S. 1989. Management Information System. New Delhi: Ashish Publishing. EXHIBIT 4 REQUIREMENTS DURING THE PLANNING PROCESS 1. Supplying the information needed by the planner at each step Source: Kumar, S. 1989. Management Information System. New Delhi: Ashish Publishing. EXHIBIT 5 Controlling involves 1. Establishing standards of performance in order to reach the objective Source: Murdick, R.G., and Ross, J.E. 1975. Information Systems for Modern Management. Englewood Cliffs, NJ: Prentice-Hall. EXHIBIT 6 REQUIREMENTS FOR CONTROLLING 1. Defining expectations in terms of information attributes Source: Murdick, R.G., and Ross, J.E. 1975. Information Systems for Modem Management. Englewood Cliffs, NJ: Prentice-Hall. EXHIBIT 7 Levels of decision making · Strategic Elements of decision making · Model Source: Gorry, G., and Scott Morton, M.S. 1971. A framework for management information system. Sloan Management Review. Fall 1971. EXHIBIT 8 "A set of elements forming an activity or a procedure/scheme seeking a common goal or goals by operating on data and/or energy and/or matter in a time reference to yield information and/or energy and/or matter." Source: Hopkins, R.C. et al. A systematic Procedure for System Development: Systems Philosophy. Englewood Cliffs, NJ: Prentice-Hall EXHIBIT 9 1. Some components, functions and processes performed by these various components Source: Albrecht, K. 1983. New systems view of the organization. In: Organization Development. Englewood Cliffs, NJ: Prentice-Hall. EXHIBIT 10
EXHIBIT 11 · Developing and managing operating systems (e.g., money flows, manpower systems) Source: Murdick, R.G., and Ross, J.E. 1975. Information Systems for Modem Management. Englewood Cliffs, NJ: Prentice-Hall. EXHIBIT 12 'A set of classified and interpreted data used in the decision making process" Source: Lucas, H., Jr. 1978. Information Systems Concepts for Management. New York, NY: McGraw-Hill. Information has also been defined as some tangible entity which serves to reduce uncertainty about future state or events In the context of different levels of decision making, information can be described as: · source The value of management information lies in its content, form and timing of presentation EXHIBIT 13 MIS AS A PYRAMIDAL STRUCTURE EXHIBIT 14 1. Concepts of organization EXHIBIT 15 IMPLICATIONS OF THE ORGANIZATIONAL STRUCTURE FOR MIS Concepts: · Hierarchy of authority Source: Davis, G., and Olson, M.H. 1984. Management Information Systems: Conceptual Foundation, Structure and Development. New York, NY: McGraw-Hill. EXHIBIT 16 INFORMATION REQUIREMENTS FOR MIS 1. Assessing information requirements Source: Davis, G., and Olson, M.H. 1984. Management Information Systems: Conceptual Foundation, Structure and Development. New York, NY: McGraw-Hill. EXHIBIT 17 STRATEGIES FOR DETERMINING INFORMATION REQUIREMENTS 1. Asking Source: Davis, G.B. 1982. Strategies for information requirements determination. IBM Systems Journal, 21(1): 4-31. EXHIBIT 18 STRATEGY FOR DETERMINING DATA REQUIREMENTS 1. Identify elements in the development process utilizing system:· Information systems or applications
6. Select one or more from the set of methods to implement the primary strategy Source: Davis, G.B. 1985. Management Information Systems: Conceptual Foundation, Structure and Development. New York, NY: McGraw-Hill. EXHIBIT 19 1. Databank information system EXHIBIT 20 1. Understand the organization Source: Crowe, T., and Avison, D.E. 1982. Management Information from Databases. London: Macmillan. EXHIBIT 21 · Relevance EXHIBIT 22
STRATEGIES FOR DETERMINING MIS DESIGN · Organization-chart approach Source: Blumenthal, S.C. 1990. Management Information Systems: A Framework for Planning and Control. Englewood Cliffs, NJ: Institute of Personnel Management. Reading note: Management information systems
Information and the MIS conceptInformation is a set of classified and interpreted data used in decision making. It has also been defined as 'some tangible or intangible entity which serves to reduce uncertainty about future state or events' (Lucas, 1978). A management information system (MIS) is 'an integrated user-machine system for providing information to support operations, management and decision making functions in an organization. The system utilizes computers, manual procedures, models for analysis, planning, control and decision making, and a database' (Davis and Olson, 1984). MIS facilitates managerial functioning. Management information is an important input at every level in the organization for decision making, planning, organizing, implementing, and monitoring and controlling. MIS is valuable because of its content, form and timing of presentation. In the context of different levels of decision making, information can be described as: · source, The MIS concept comprises three interrelated and interdependent key elements: management, system and information (Murdick and Ross, 1975). Management and the MIS processAn MIS is directed towards the managerial functions of planning, controlling and monitoring, and decision making. Planning Planning consists of five sequential and interactive steps (Kumar, 1989). These are: · selecting objectives; The basic requirements during the planning process of most importance in designing and implementing an MIS for an organization are (Kumar, 1989): · providing the information required by the planner at each step of planning; Monitoring and controlling Controlling 'compels events to conform to plans' (Murdick and Ross, 1975). It involves: · establishing standards of performance in order to reach the objective; The requirements for successful development of a control system are: · defining expectations in terms of information attributes; and Decision making Decision making is the process of selecting the most desirable or optimum alternative to solve a problem or achieve an objective. The quality and soundness of managerial decisions is largely contingent upon the information available to the decision-maker. Gorry and Scott Morton (1971) classified decision making on three levels of a continuum: · Strategic decisions are future-oriented because of uncertainty. They are part of the planning activity. Elements of decision making The four components of the decision making process are (Burch and Strater, 1974): · Model A model is an abstract description of the decision problem. The model may be quantitative or qualitative. Systems approachModern management is based upon a systems approach to the organization. The systems approach views an organization as a set of interrelated sub-systems in which variables are mutually dependent. A system can be perceived as having: · some components, functions and the processes performed by these various components; The organizing system has five basic parts, which are interdependent (Murdick and Ross, 1975). They are: · the individual; The interrelationship of the sub-systems within an organization is fundamental to the systems approach. The different components of the organization have to operate in a coordinated manner to attain common organizational goals. This results in synergic effects. The term synergy means that when different sub-systems work together they tend to be more efficient than if they work in isolation (Murdick and Ross, 1975). Thus, the output of a system with well integrated sub-systems would be much more than the sum of the outputs of the independent sub-systems working in isolation. The systems approach provides a total view of the organization. It enables analysis of an organization in a scientific manner, so that operating management systems can be developed and an appropriate MIS designed (Murdick and Ross, 1975). By providing the required information, an MIS can help interrelate, coordinate and integrate different sub-systems within an organization, thus facilitating and increasing coordinated working of the sub-systems, with consequent synergism. The interaction between different components of the organization depends upon integration, communication and decision making. Together they create a linking process in the organization. Integration ensures that different sub-systems work towards the common goal. Coordination and integration are useful controlling mechanisms which ensure smooth functioning in the organization, particularly as organizations become large and increasingly complex. As organizations face environmental complexity, diversity and change, they need more and more internal differentiation, and specialization becomes complex and diverse. The need for integration also increases as structural dimensions increase. Communication integrates different sub-systems (specialized units) at different levels in an organization. It is thus a basic element of the organizational structure necessary for achieving the organization's goals. Organizational structure and MISMIS has been described as a pyramidal structure, with four levels of information resources. The levels of information would depend upon the organizational structure. The top level supports strategic planning and policy making at the highest level of management. The second level of information resources aid tactical planning and decision making for management control. The third level supports day-to-day operations and control. The bottom level consists of information for transaction processing. It then follows that since decision making is specific to hierarchical levels in an organization, the information requirements at each level vary accordingly. Thus, MIS as a support system draws upon: · concepts of organization; Davis and Olson (1984) analysed the implications of different characteristics of the organizational structure on the design of information systems (Table 1). Information requirements for MISAssessing information needs A first step in designing and developing an MIS is to assess the information needs for decision making of management at different hierarchical levels, so that the requisite information can be made available in both timely and usable form to the people who need it. Such assessment of information needs is usually based on personality, positions, levels and functions of management. These determine the various levels of information requirements. Table 1 Organizational structural implications for information systems
Source: Taken from Gordon and Olson, 1984: 358-359. Levels of information requirements There are three levels of information requirements for designing an MIS (Davis and Olson 1984). They are: · At the organizational level, information requirements define an overall structure for the information system and specific applications and database. Strategies for determining information requirements Gordon and Olson (1984) suggested six steps in selecting a strategy and method for determining information requirements (Table 2). Table 2 Strategies for determining information requirements
Source: Davis and Olson, 1984: 488-493. Types of MISMIS can be categorized (Mason, 1981) as follows: · Databank information systems refer to creation of a database by classifying and storing data which might be potentially useful to the decision-maker. The information provided by the databank is merely suggestive. The decision-maker has to determine contextually the cause and effect relationships. MIS designs based on the databank information system are better suited for unstructured decisions. Process of MISThe MIS implementation process (Table 3) involves a number of sequential steps (Murdick and Ross, 1975): 1. First establish management information needs and formulate broad systems objectives so as to delineate important decision areas (e.g., general management, financial management or human resources management). Within these decision areas there will be factors relevant to the management decision areas, e.g., general management will be concerned about its relationship with the managing board, institute-client relationships and information to be provided to the staff. This will then lead the design team to ask what information units will be needed to monitor the identified factors of concern. Positions or managers needing information for decision making will be identified. Table 3 Methodology for implementing MIS
Adapted from Crowe and Avison, 1982. Criteria for MISCrowe and Avison (1982) suggested five criteria for an MIS: · Relevance Information should be relevant to the individual decision-makers at their level of management. Strategies for determining MIS designMIS design should be specific to an organization, respecting its age, structure, and operations. Six strategies for determining MIS design have been suggested by Blumenthal (1969): · Organization-chart approach Using this approach, the MIS is designed based on the traditional functional areas, such as finance, administration, production, R&D and extension. These functional areas define current organizational boundaries and structure. ReferencesAlbrecht, K. 1983. A new systems view of the organization. in: Organization Development. Englewood Cliffs, NJ: Prentice-Hall. Bee, R., & Bee, F. 1990. Management Information Systems and Statistics. [Management Studies Series] London: Institute of Personnel Management. Blumenthal, S.C. 1969. Management Information System: A Framework for Planning and Control. Englewood Cliffs, NJ: Prentice-Hall. Burch, J.G., Jr., & Strater, F.R., Jr. 1979. Information Systems: Theory and Practice. New York, NY: John Wiley. Crowe, T., & Avison, D.E. 1982. Management Information from Databases. London: Macmillan. Davis, G.B. 1982. Strategies for information requirements determination. IBM Systems Journal, 21 (1): 4-31. Davis, G.B., & Olson, M.H. 1984. Management Information Systems: Conceptual Foundations, Structure and Development. 2nd ed. New York, NY: McGraw-Hill. Gorry, G., & Scott Morton, M.S. 1971. A framework for management information systems. Sloan Management Review, Fall 1971. Hopkins, R.C. et al., 1962. A Systematic Procedure for System Development: Systems Philosophy. Englewood Cliffs, NJ: Prentice-Hall. Kumar, H. 1989. Management Information Systems: A Conceptual and Empirical Approach. New Delhi: Ashish Publishing House. Lucas, H.C., Jr. 1978. Information Systems Concepts for Management. New York, NY: McGraw-Hill. Mason, R.O. 1981. Basic concepts for designing management information systems. In: Mason, R.O., & Swanson, E.B. (eds) Measurements for Management Decision. Philippines: Addison-Wesley. Mehra, B.K. 1982. Putting management back into MIS. pp. 41-50, in: Keen, G.W. (ed) Perspectives on Information Management. New York, NY: John Wiley. Murdick, R.G., & Ross, J.E. 1975. Information Systems for Modern Management. Englewood Cliffs, NJ: Prentice-Hall. Zani, W.M. 1970. Blueprint for management information system. Harvard Business Review, November-December 1970.
Is department is divided into the following functions?In most large organizations, the IS department is divided into three functions: operations,development, and support.
What are the functions of information system in a business?An information system collects, stores, and disseminates information from an organization's environment and internal operations to support organizational functions and decision making, communication, coordination, control, analysis, and visualization.
What is the information system that supports the major functions of an organization?A human resource information system (HRIS) supports the human resources function of an organization with information. The name of this function reflects the recognition that people who work in a firm are frequently its most valuable resources.
Does visa program allow skilled employees?What is the H-1B Visa Category? The H-1B is a temporary (nonimmigrant) visa category that allows employers to petition for highly educated foreign professionals to work in “specialty occupations” that require at least a bachelor's degree or the equivalent.
|