Unit 2: Management Information System (MIS)

Unit 2: Management Information System (MIS)

Introduction

To the managers, Management Information System is an implementation of the organizational systems and procedures.

To a programmer it is nothing but files structures and file processing. However, it involves much more complexity.

The three components of MIS provide a more complete and focused definition, where System suggests integration and holistic view, Information stands for processed data, and Management is the ultimate user, the decision makers.

Management information system can thus be analyzed as follows:

Management covers the planning, control, and administration of the operations of a concern. The top management handles planning; the middle management concentrates on controlling; and the lower management is concerned with actual administration.

Information means the processed data that helps the management in planning, controlling and operations. Data means all the facts arising out of the operations of the concern. Data is processed i.e. recorded, summarized, compared and finally presented to the management in the form of MIS report.

System Data is processed into information with the help of a system. A system is made up of inputs, processing, output and feedback or control.

Thus MIS means a system for processing data in order to give proper information to the management for performing its functions.

Definition

Management Information System or 'MIS' is a planned system of collecting, storing, and disseminating data in the form of information needed to carry out the functions of management.

Objectives of MIS

Following are the basic objectives of an MIS:

Capturing Data: Capturing contextual data, or operational information that will contribute in decision making from various internal and external sources of organization

Processing Data: The captured data is processed into information needed for planning, organizing, coordinating, directing and controlling functionalities at strategic, tactical and operational level. Processing data means:

            -making calculations with the data

            -sorting data

            -classifying data and

            -summarizing data

Information Storage: Information or processed data need to be stored for future use.

Information Retrieval: The system should be able to retrieve this information from the storage as and when required by various users.

Information Propagation: Information or the finished product of the MIS should be circulated to its users periodically using the organizational network.

Characteristics of MIS

·        It should be based on a long-term planning.

·        It should provide a holistic view of the dynamics and the structure of the organization.

·        It should work as a complete and comprehensive system covering all interconnecting sub-systems within the organization.

·        It should be planned in a top-down way, as the decision makers or the management should actively take part and provide clear direction at the development stage of the MIS.

·        It should be based on need of strategic, operational and tactical information of managers of an organization.

·        It should also take care of exceptional situations by reporting such situations.

·        It should be able to make forecasts and estimates, and generate advanced information, thus providing a competitive advantage. Decision makers can take actions on the basis of such predictions.

·        It should create linkage between all sub-systems within the organization, so that the decision makers can take the right decision based on an integrated view.

·        It should allow easy flow of information through various sub-systems, thus avoiding redundancy and duplicity of data. It should simplify the operations with as much practicability as possible.

·        Although the MIS is an integrated, complete system, it should be made in such a flexible way that it could be easily split into smaller sub-systems as and when required.

·        A central database is the backbone of a well-built MIS.

Need for MIS

An information system involves personnel, equipment, services, integration and objectives, and the emphasis remains on information because the manager must have information concerning each of the aspects to function.

As a decision maker, the manager himself/herself is a processor of information.

He/she must have the ability to store, process, retrieve and display, whatever information is needed for decision making.

To keep ahead, today's manager must keep abreast of his/her information requirements and evolve systems to deliver that information.

The information needs of managers vary according to their level with management hierarchy, that is, the top, middle and lower level management.

Process of MIS Development

The various steps in the process of MIS development are:

1)      Finding out the information needs of all managers;

2)      Writing down the objectives of the MIS and the anticipated benefits;

3)      Preparing a plan for the design of the MIS including schedule and estimated costs;

4)      Preparing a rough or gross design for the MIS, that appears to be practical and that will in all likelihood achieve the objectives established;

5)      Preparing the detailed design. It requires refining and expansion of the gross design. Detailed description of management reports and a detailed description of the flow of information are required. A data bank or list of all data to be kept in files must be prepared. A procedures manual must be prepared to tell how the MIS works and what the personnel involved must do. The computer centre must also be designed and software or programmes made available;

6)      Putting the new MIS into operation. Prior testing may be desirable to see that all parts work together. Imagine the problems that could arise in an organization if the old system were abandoned and a computer programme in the new system did not work; and

7)      Monitoring and maintaining the new system. That is, needed changes in procedures or the structure of the data files must be made from time to time. The MIS must also be changed to meet changing inputs and changing management needs.

Nature and Scope of MIS

Advantages of MIS

The MIS has several advantages for the library/information centre.

·        Every bit of information required for decision making is available.

·        Gaps in information get deleted, incomplete information gets completed, incorrect information gets corrected.

·        Decision making becomes more accurate, less risky and rather easy.

·        Two way information flow gets established, that is, manager downwards and bottom upwards

·        As updating of information is a continuous process, monitoring of every operation becomes easy, and immediate measures, corrective or otherwise, may be taken.

·        Trend analysis and forecasting becomes easy and the exercise of long range planning becomes less difficult.

Pitfalls/Constraints

The major problems found in most MIS are as follows:

i) The job is normally done by computer specialists and/or system analysts. But it requires the involvement of all engaged in management.

ii) Lack of resources

iii) Lack of trained personnel

iv) Lack of planned approach

v) Duplication of effort

vi) Time lag

vii) The volume of data at times makes it humanly impossible to be accurate and efficient.

viii) Useful and necessary data, at times, available, but often in a form or location where it is difficult to retrieve.

Costs of MIS

The costs of MIS are usually greater than expected as only a few of the costs are actually visible. These projected cost figures should be available at the outset of the project. The major costs associated with MIS are:

a)      Hardware As MIS are developed, it is found that the hardware existing with an organization is inadequate for the task. Therefore, the computer resources, terminals, disk, and memory size etc. need to be evaluated to determine if they will serve the purpose.

b)      Software Each aspect of MIS will require Programming. Sufficient time is required for testing the programming phase of the MIS. This is very time consuming and thus expensive.

c)      Personnel The computerized MIS is a complex and. sophisticated management tool. The personal required to develop such systems have to be experienced and well versed all aspects of the system, as MIS requires interrelating all the time. Such projects, thus involve a heavy cost with respect to personnel if new personnel are to be recruited.

d)      Maintenance An important aspect in development of any MIS is ongoing maintenance all the time. Up-to-date and timely information is required always, it is essential that a strong maintenance team be attached to the system. This leads to high costs.

Skills of MIS Manager

As indicated previously, the output of a management information system is directed towards assisting management and operating personnel.

To provide this desired it, the MIS Manager must have certain skills. Knowledge of the total organization and its objectives.

Ability to communicate effectively, orally and in writing. Relationship with top management.

Relationship with subordinates. Knowledge of information processing and data communication techniques.

Ability to design and judge the design of the system.

MIS and Libraries and Information Centers

Library/Information managers have recognized information as an important commodity and the concept of management information as an organizational resource.

The difficult decisions by library managers in the present times of financial restraint, demands for new services and point to a need for better management information on which to base those decisions.

This information must itself be managed and MIS offers the best solution to the problem.

MIS has been found to be a valuable monitoring technique in library management.

Changes in the computer technology will also indirectly enhance the MIS development in future.

Some of these changes include faster processing speeds, greater disk storage capacity, multiprocessing and use of generalized software.

These trends in automation forecast some of the tenets in MIS in libraries and information centers.

Thus, MIS will become more widespread in future in library situations.

Also, this will lead to changes in traditional report form of MIS in libraries.

Assignments

1. What do you understand by the term "Management Information System"? Give its Objectives and Characteristics. Name the various costs associated with the MIS process.
2. Write about MIS and Libraries and Information Centers