Mis

Session 1.
Management information systems

Session guide: Management information systems
Reading note: Management information systems
References
DATE
TIME
FORMAT
Plenary participatory lecture
TRAINER
OBJECTIVES
At the end of this session, participants should be able to understand and appreciate:
1.Principles and elements of MIS
2.The relationship between organizational structure and MIS
3.Information requirements for MIS
4.Different types of MIS
5.The process of developing a MIS
6.Criteria for MIS
7.Strategies for determining MIS design
INSTRUCTIONAL MATERIALS
Exhibit 1
Management information systems
Exhibit 2
MIS elements
Exhibit 3
Steps in planning
Exhibit 4
Requirements during the planning process
Exhibit 5
Controlling
Exhibit 6
Requirements for controlling
Exhibit 7
Decision making
Exhibit 8
System
Exhibit 9
Perceiving the system
Exhibit 10
Basic parts of the organization
Exhibit 11
Why a systems approach
Exhibit 12
Information
Exhibit 13
MIS as a pyramid structure
Exhibit 14
Conceptual basis of MIS
Exhibit 15
Implications of the organizational structure for MIS
Exhibit 16
Information requirements for MIS
Exhibit 17
Strategies for determining information requirements
Exhibit 18
Strategy for determining data requirements
Exhibit 19
Types of MIS
Exhibit 20
The MIS process
Exhibit 21
MIS criteria
Exhibit 22
Strategies for determining MIS design
REQUIRED READING
BACKGROUND READING
None.
SPECIAL EQUIPMENT AND AIDS
Overhead projector and chalkboard
Session guide: Management information systems

Show 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 interrelating, 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 organizationchart 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 integratelater 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
on time
in a usable form
EXHIBIT 2
MIS ELEMENTS
Management functions
Planning
Controlling
Decision making
Information system
Management information
EXHIBIT 3
STEPS IN PLANNING
1. Selecting objectives
2. Identifying activities required to achieve the stipulated objectives
3. Describing the resources or skills, or both, necessary to perform the activities
4. Defining the duration of each activity to be undertaken
5. Determining the sequence of the activities

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
2. Establishing procedures for procuring the information at each step (including the means to
view alternatives)
3. Arranging for storage of the approved plans as information for the control process
4. Devising an efficient method for communicating the plans to other members in the
organization
Source: Kumar, S. 1989. Management Information System. New Delhi: Ashish Publishing.
EXHIBIT 5
CONTROLLING
Controlling involves
1. Establishing standards of performance in order to reach the objective
2. Measuring actual performance against the set standards
3. Correcting deviations to ensure that actions remain on course
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
2. Developing the logic for reporting deviations to all levels of management prior to the actual
occurrence of the deviation
Source: Murdick, R.G., and Ross, J.E. 1975. Information Systems for Modem Management.
EXHIBIT 7
DECISION MAKING
Levels of decision making
Strategic
Tactical
Technical
Elements of decision making
Model
Constraints
Optimization
Source: Gorry, G., and Scott Morton, M.S. 1971. A framework for management information
system. Sloan Management Review. Fall 1971.
EXHIBIT 8
SYSTEM
"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
PERCEIVING THE SYSTEM
1. Some components, functions and processes performed by these various components
2. Relationships among the components that uniquely bind them together into a conceptual
assembly which is called a system
3. An organizing principle which is an overall concept that gives it a purpose
4. The fundamental approach of the system is the interrelationship of the sub-systems of the
organization
Source: Albrecht, K. 1983. New systems view of the organization. In: Organization
Development. Englewood Cliffs, NJ: Prentice-Hall.
EXHIBIT 10
BASIC PARTS OF THE ORGANIZATION
1. The individual
2. The formal and informal organization
3. Patterns of behaviour arising out of role demands of the organization
4. The role perception of the individual
5. The physical environment in which individuals work

EXHIBIT 11
WHY A SYSTEMS APPROACH
Developing and managing operating systems (e.g., money flows, manpower systems)
Designing an information system for decision making
Systems approach and MIS
MIS aims at interrelating, coordinating and integrating different sub-systems by providing
information required to facilitate and enhance the working of the sub-systems and achieve
synergistic effects
Source: Murdick, R.G., and Ross, J.E. 1975. Information Systems for Modem Management.
EXHIBIT 12
INFORMATION
'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
data
inference and predictions drawn from the data
value and choices (evaluation of inferences with regard to the objectives, and then choosing
courses of action)
action which involves a course of action
The value of management information lies in its content, form and timing of presentation
EXHIBIT 13
MIS AS A PYRAMIDAL STRUCTURE
EXHIBIT 14
CONCEPTUAL BASIS OF MIS
1. Concepts of organization
2. Organizational theories, principles, structure, behaviour and processes such as
communication, power and decision making
3. Motivation and leadership behaviour
EXHIBIT 15
IMPLICATIONS OF THE ORGANIZATIONAL STRUCTURE FOR MIS
Concepts:
Hierarchy of authority
Specialization
Formalization
Centralization
Modification of the basic model
Information model of organization
Organizational culture
Organizational power
Organizational growth cycle
Goal displacement
Organizational learning
Project model of organizational change
Case for stable system
Systems that promote organizational change
Organizations as socio-technical systems
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
2. Levels of information requirements
Organizational level
Application level
Technical
Database
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
2. Deriving from an existing information system
3. Synthesizing from characteristics of the utilizing system
4. Discovering from experimentation with an involving information system
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
Users
Analysts
2. Identify process uncertainties:

Existence and availability of a set of usable requirements
Ability of users to specify requirements
Ability of analysts to elicit and evaluate requirements
3. Evaluate the effects of elements in the development process over process uncertainties
4. Evaluate the combined effects of the process uncertainties on overall requirements
uncertainty
5. Select a primary strategy for requirements determination based on the overall requirements
uncertainty
Uncertainty level
Low
Strategy
Asking or deriving from an existing system
Synthesis from characteristics of utilizing systems
High
Discovering from experimentation
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
TYPES OF MIS
1. Databank information system
2. Predictive information system
3. Decision making information system
4. Decision taking information system
EXHIBIT 20
THE MIS PROCESS
1. Understand the organization
2. Analyse the organization's information requirements
3. Plan overall strategy
4. Review
5. Preliminary analysis
6. Feasibility assessment
7. Detailed fact finding
8. Analysis
9. Design
10. Development
11. Cutover
12. Obtain conceptual schema
13. Recruit database administrator
14. Obtain logical schema
15. Create data dictionary
16. Obtain physical schema
17. Create database
18. Modify data dictionary
19. Develop sub-schemas
20. Modify database
21. Amend database
Source: Crowe, T., and Avison, D.E. 1982. Management Information from Databases.
London: Macmillan.
EXHIBIT 21
MIS CRITERIA
Relevance
Management by exception
Accuracy
Adaptability
EXHIBIT 22
STRATEGIES FOR DETERMINING MIS DESIGN
Organization-chart approach
Integrate-later approach
Data-collection approach
Database approach
Top-down approach
Source: Blumenthal, S.C. 1990. Management Information Systems: A Framework for
Planning and Control. Englewood Cliffs, NJ: Institute of Personnel Management.
Information and the MIS concept

Management and the MIS process
Systems approach
Organizational structure and MIS
Types of MIS
Process of MIS
Criteria for MIS
Information and the MIS concept

Information 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 usermachine 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,
data,
inferences and predictions drawn from data,
value and choices (evaluation of inferences with regard to the objectives and then choosing
a course of action), and
action which involves course of action.
The MIS concept comprises three interrelated and interdependent key elements: management,
system and information (Murdick and Ross, 1975).
Management and the MIS process

An 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;
identification of the activities which are required to achieve the stipulated objectives;
detailing the resources - including the various skills - required to undertake the activities;
determining the duration of each activity to be performed; and
defining the sequence of the activities.
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;
establishing procedures for obtaining the information;
arranging for storage of the approved plans, as these will provide the information requisite
to monitoring and controlling; and
evolving methods for communicating the plans to employees in the organization.
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;
measuring actual performance against the set standards; and
keeping actions on course by correcting deviations as they appear (mid-course corrections).
The requirements for successful development of a control system are:
defining expectations in terms of information attributes; and
developing the logic for reporting deviations to all levels of management prior to the actual
occurrence of the deviation.
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.
Tactical decision making combines planning activities with controlling. It is for short-term
activities and associated allocation of resources to them to achieve the objectives.
Technical decision making is a process of ensuring efficient and effective implementation of
specific tasks.
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.
Criteria The criteria must state how goals or objectives of the decision problem can be
achieved. When there is a conflict between different criteria, a choice has to be made through
compromise.
Constraints. Constraints are limiting factors which define outer limits and have to be
respected while making a decision. For example, limited availability of funds is a constraint
with which most decision makers have to live.
Optimization Once the decision problem is fully described in a model, criteria for decision
making stipulated and constraints identified, the decision-maker can select the best possible
solution.
Systems approach
Modern 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;
relationships among the components that uniquely bind them together into a conceptual
assembly which is called a system; and
an organizing principle that gives it a purpose (Albrecht, 1983).
The organizing system has five basic parts, which are interdependent (Murdick and Ross,
1975). They are:
the individual;
the formal and informal organization;
patterns of behaviour arising out of role demands of the organization;
the role perception of the individuals; and
the physical environment in which individuals work.
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 MIS

MIS 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;
organizational theories, principles, structure, behaviour and processes such as
communication, power and decision making; and
motivation and leadership behaviour.
Davis and Olson (1984) analysed the implications of different characteristics of the
organizational structure on the design of information systems (Table 1).

Assessing 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
Concept
Implications for Information Systems
Hierarchy of authority A tall hierarchy with narrow span of control requires more formal
control information at upper levels than a flat hierarchy with wide
span of control.
Specialization
Information system applications have to fit the specialization of the

organization.
Formalization
Information systems are a major method for increasing formalization.
Centralization
Information systems can be designed to suit any level of

centralization.
Modification of basic Information systems can be designed to support product or service

model
organizations, project organizations, lateral relations and matrix
organizations.
Information model of Organizational mechanisms reduce the need for information

organization
processing and communication. Vertical information systems are an
alternative to lateral relations. Information systems are used to
coordinate lateral activities.
Organizational culture Organizational culture affects information requirements and system

acceptance.
Organizational power Organizational power affects organizational behaviour during

information system planning, resource allocation and implementation.
Computer systems can be an instrument of organizational power
through access to information.
Organizational growth The information system may need to change at different stages of
growth.
Goal displacement
When identifying goals during requirements determination, care

should be taken to avoid displaced goals.
Organizational
learning
Suggests need for information system design for efficiency measures

to promote single loop learning and effectiveness measures for double
loop learning.
Project model of
Describes general concepts for managing change with information
organizational change system projects.
Case for stable system Establish control over frequency of information system changes.
Systems that promote Reporting critical change variables, organizational change, or

organizational change relationships, and use of multiple channels in a semi-confusing system
may be useful for promoting responses to a changing environment.
Organizations as
socio-technical
systems
Provides approach to requirements determination and job design when

both social and technical considerations are involved.
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.
Application level requirements include social or behavioural - covering work organization
objectives, individual roles and responsibility assumptions, and organizational policies - and
technical, which are based on the information needed for the job to be performed. A
significant part of the technical requirement is related to outputs, inputs, stored data, structure
and format of data and information processes.
At the user level, database requirements can be classified as perceived by the user or as
required for physical design of the 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
1. Identify elements in the development process
Utilizing systems
Information system or application
Users
Analysis
2. Identify characteristics of the four elements (in 1, above) in the development process which
could affect uncertainty in the information requirements.
3. Identify the process uncertainties

Existence and availability of a set of usable requirements.
Ability of users to specify requirements.
Ability of the analyst to elicit and evaluate information requirements.
Assess how the characteristics of the four elements in the development process (listed under
1, above) will affect the these process uncertainties.
4. Determine how the overall requirements uncertainties would be affected by the combined
effects of the process uncertainties.
5. Considering the overall requirements uncertainty, choose a primary strategy for

information requirements.
If uncertainty is low, then the strategy should be to:
Ask the users what their requirements are. This presupposes that the users are able to
structure their requirements and express them objectively. Asking can be done through
- questions, which may be closed or open,
- brainstorming sessions, totally open or guided, and
- group consensus as aimed at in Delphi methods and group norming.
Wherever there are close similarities in the organization and easy replication is possible,
information requirements can be derived from the existing system.
Characteristics of the utilizing system should be analysed and synthesized. This is
particularly useful if the utilizing system is undergoing change.
If uncertainty is high, discover from experimentation by instituting an information system and
learning through that the additional information requirements. This is 'prototyping' or
'heuristic development' of an information system.
6. Select an appropriate method.

Source: Davis and Olson, 1984: 488-493.
Types of MIS
MIS 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.
Predictive information systems provide source and data along with predictions and
inferences. The decision-maker can also enquire as to 'what if a certain action is taken?' and
whether the underlying assumptions are true. This type of MIS is useful for semi-structured
decisions.
Decision-making information systems provide expert advice to the decision-maker either in
the form of a single recommended course of action or as criteria for choice, given the value
system prevailing in the organization. The decision-maker has just to approve, disapprove or
modify the recommendation. Decision-making information systems are suitable for structured
decisions. Operations research and cost-effectiveness studies are examples of decision-making
information systems.
Decision-taking information systems integrate predictive information and decision-making
systems.
Process of MIS
The 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.
2. Develop a general description of a possible MIS as a coarse design. This design will have
to be further refined by more precise specifications. For efficient management of information
processing, the MIS should be based on a few databases related to different sub-systems of
the organization.
3. Once the information units needed have been determined and a systems design developed,
decide how information will be collected. Positions will be allocated responsibility for
generating and packaging the information.
4. Develop a network showing information flows.
5. Test the system until it meets the operational requirements, considering the specifications
stipulated for performance and the specified organizational constraints.
6. Re-check that all the critical data pertaining to various sub-systems and for the organization
as a whole are fully captured. Ensure that information is generated in a timely manner.
7. Monitor actual implementation of the MIS and its functioning from time to time.
Table 3 Methodology for implementing MIS
1. Understand the organization
2. Analyse the information requirements of the organization
3. Plan overall strategy
4. Review
5. Preliminary analysis
6. Feasibility assessment
7. Detailed fact finding
8. Analysis
9. Design
10. Development
11. Cutover
12. Obtain conceptual schema
13. Recruit database administrator
14. Obtain logical schema
15. Create data dictionary
16. Obtain physical schema
17. Create database
18. Modify data dictionary
19. Develop sub-schemas
20. Modify database
21. Amend database

Adapted from Crowe and Avison, 1982.
Criteria for MIS

Crowe and Avison (1982) suggested five criteria for an MIS:
Relevance Information should be relevant to the individual decision-makers at their level of
management.
Management by exception Managers should get precise information pertaining to factors
critical to their decision making.
Accuracy The database from which information is extracted should be up-to-date,
contextually relevant and validated.
Timeliness The information should be provided at the time required.
Adaptability The information system should have an in-built capability for re-design so that
it can suitably adapt to environmental changes and changing information requirements.

MIS 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.
Integrate-later approach Largely a laissez faire approach, it does not conform to any
specified formats as part of an overall design. There is no notion of how the MIS will evolve
in the organization. Such an MIS becomes difficult to integrate. In today's environment where managers demand quick and repeated access to information from across sub-systems the integrate-later approach is becoming less and less popular.
Data-collection approach This approach involves collection of all data which might be
relevant to MIS design. The collected data are then classified. This classification influences
the way the data can be exploited usefully at a later stage. The classification therefore needs to
be done extremely carefully.
Database approach A large and detailed database is amassed, stored and maintained. The
database approach is more and more accepted for two main reasons: first, because of data
independence it allows for easier system development, even without attempting a complete
MIS; and, second, it provides management with immediate access to information required.
Top-down approach The top-down approach involves defining the information needs for
successive layers of management. If information required at the top remains relatively stable
in terms of level of detail, content and frequency, the system could fulfil MIS requirements
(Zani, 1970). The usefulness of this approach depends on the nature of the organization. It can
be suitable for those organizations where there is a difference in the type of information
required at the various levels.
Total-system approach In this approach the interrelationships of the basic information are
defined prior to implementation. Data collection, storage and processing are designed and
done within the framework of the total system. This approach can be successfully
implemented in organizations which are developing.
References
Albrecht, K. 1983. A new systems view of the organization. in: Organization Development.
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.
PLANNING, DESIGNING AND IMPLEMENTATION OF MIS

Planning of Information Systems
a) Development of Long Range Plans of the MIS
Many organizations have purchased computers for data processing and for meeting the
statutory requirements of filing the returns and reports to the Government. Computers
are used mainly for computing and accounting the business transactions and have not
been considered as a tool for information processing. The organizations have invested on
computers and expanded its use by adding more or bigger computers to take care of the
numerous transactions in the business. In this approach, the information processing
function of the computers in the organization never got its due regard as an important
asset to the organization. In fact, this function is misinterpreted as data processing for
expeditious generation of reports and returns, and not as information processing for
management actions and decisions. However, the scene has been changing since late
eighties when the computers became more versatile, in the function of Storage,
Communications, Intelligence and Language. The computer technology is so advanced
that the barriers of storage, distance understanding of language and speed are broken.
The computers have become user-friendly. They can communicate to any distance and
hare data, information and physical resources of other computers. Computers can now be
used as a tool for information processing and communication. It can be used for storing
large database or knowledgebase. It can be used for knowing the current status of any
aspect of the business due to its online real time processing capability. With the
advancement of computer technology more popularly known as information technology,
it is now possible to recognize information as a valuable resource like money and
capacity. It is necessary to link its acquisition, storage, use, and disposal as per the
business needs for meeting the business objectives. Such a broad based activity can be
executed only when it is conceived as a system. This system should deal with
management information and not with data processing alone. It should provide support
for management planning, decision making and action. It should support the needs of the
lower management as well as that of the top management. It should satisfy the needs of
different people in the organization at different levels having varying managerial
capabilities. It should provide support to the changing needs of business management. In
short, we need a Management Information System flexible enough to deal with the
changing information needs of the organization. It should be conceived as an open
system continuously interacting with the business environment with a built-in mechanism
to provide the desired information as per the new requirements of the management. The
designing of such an open system is a complex task. It can be achieved only if the MIS is
planned, keeping in view, the plan of the business management of the organization. The
plan of MIS is consistent to the business plan of the organization. The information needs
for the implementation of the business plan should find place in the MIS. To ensure such
an alignment possibility, it is necessary that the business plan strategic or otherwise,
states the information needs. The information needs are then traced to the source data
and the systems in the organization which generate such a data. The plan of
development of the MIS is linked with the steps of the implementation in a business
development plan. The system of information generation is so planned that strategic
information is provided for the strategic planning, control information is provided for a
short term planning and execution. The details of information are provided to the
operations management to assess the status of an activity and to find ways to make up, if
necessary. Once the management needs are translated into information needs, it is left to
the designer to evolve a plan of MIS development and implementation.
b) Contents of the MIS Plan
A long range MIS plan provides direction for the development of the systems, and
provides a basis for achieving the specific targets or tasks against a time frame. The plan
would have contents which will be dealt by the designer under a support from the top
management.
C) MIS Goals and Objectives
It is necessary to develop the goals and objectives for the MIS which will support the
business goals. The MIS goals and objectives will consider management philosophy,
policy constraints, business risks, internal and external environment of the organization
and the business. The goals and the objectives of the MIS would be so stated that they
can be measured. The typical statements of the goals are as under:
o It should provide online information on the stock, markets and the accounts balances.
o The query processing should not exceed more than three seconds.
o The focus of the system will be on the end user computing and access facilities.
Such statements of the goals and objectives enable the designer to set the direction and
design implementation strategies for the MIS Plan.
Strategy for the Plan Achievement
The designer has to take a number of strategic decisions for the achievement of the MIS
goals and objectives. They are:
a) Development strategy: An online, a batch, a real time technology platform.
b) System development strategy: Any approach to the system development
Operational vs. Functional Accounting vs. Analysis Database vs. Conventional approach
Distributed vs. Decentralized processing One Database vs. multiple databases SSAD vs.
OOT
c) Resources for system development: In house vs. external, customized
development vs. the use of packages.
d) Manpower composition: Analyst, programmer skills and knowhow.
The Architecture of the MIS
The architecture of the MIS plan provides a system structure and their input, output and
linkages. It also provides a way to handle the systems or subsystems by way of
simplification, coupling and decoupling of subsystems. It spells out in detail the
subsystems from the data entry to processing, analysis to modeling, and storage to
printing.
The System Development Schedule
A schedule is made for the development of the system. While preparing the schedule due
consideration is given to the importance of the system in the overall information
requirement. Due regard is also given to logical system development. For example, it is
necessary to develop the accounting system first and then the analysis. Further, unless
the systems are fully developed their integration is not possible. This development
schedule is to be weighed against the time scale for achieving certain information
requirement linked to a business plan. If these are not fully met, it is necessary to revise
the time schedule and also the development schedule, whenever necessary.
Hardware and Software Plan
Giving due regard to the technical and operational feasibility, the economics of
investment is worked out. Then the plan of procurement is made after selecting the
hardware and software. One can take the phased approach of investment starting from
the lower configuration of hardware going over to higher as development takes place. The
process is to match the technical decisions with the financial decisions. The system
development schedule is linked with the information requirements which in turn, are
linked with the goals and objectives of the business. The selection of the architecture, the
approach to the information system development and the choice of hardware and
software are the strategic decisions in the design and development of the MIS in the
organization. The organizations which do not care to take proper decisions in these areas
suffer from overinvestment, underutilization and are not able to meet the critical
information requirements. It is important to note the following points:
1. The organizations strategic plan should be the basis for the MIS strategic plan.
2. The information system development schedule should match with the implementation
schedule of the business plan.
3. The choice of information technology is a strategic business decision and not a financial
decision.
Development of Information Systems
a) Development and Implementation of the MIS
Once the plan of MIS is made, the development of the MIS calls for determining the
strategy of development is discussed earlier, the plan consists of various systems and
subsystems. The development strategy determines where to begin and in what sequence
the development can take place with the sole objective of assuring the information
support. The choice of the system or the subsystem depends on its position in the total
MIS plan, the size of the system, the user's understanding of the systems and the
complexity and its interface with other systems. The designer first develops systems
independently and starts integrating them with other systems, enlarging the system
scope and meeting the varying information needs. Determining the position of the system
in the MIS is easy. The real problem is the degree of structure, and formalization in the
system and procedures which determine the timing and duration of development of the
system. Higher the degree of structured and formalization, greater is the stabilization of
the rules, the procedures, decision-making and the understanding of the overall business
activity. Here, it is observed that the user's and the designer's interaction is smooth, and
their needs are clearly understood and respected mutually. The development becomes a
method of approach with certainty in input process and outputs.
b) Prototype Approach
When the system is complex, the development strategy is Prototyping of the System.
Prototyping is a process of progressively ascertaining the information needs, developing
methodology, trying it out on a smaller scale with respect to the data and the complexity,
ensuring that it satisfies the needs of the users, and assess the problems of development
and implementation.
This process, therefore, identifies the problem areas, inadequacies in the prototype visa is
fulfillment of the information needs. The designer then takes steps to remove the
inadequacies. This may call upon changing the prototype of the system, questioning the
information needs, streamlining the operational systems and procedures and move user
interaction.
In the prototyping approach, the designer's task becomes difficult, when there are
multiple users of the same system and the inputs they use are used by some other users
as well. For example, a lot of input data comes from the purchase department, which is
used in accounts and inventory management.
The attitudes of various users and their role as the originators of the data need to be
developed with a high degree of positivism. It requires, of all personnel, to appreciate that
the information is a corporate resource, and all have to contribute as per the designated
role by the designer to fulfill the corporate information needs. When it comes to
information the functional, the departmental, the personal boundaries do not exist. This
call upon each individual to comply with the design needs and provide without fail the
necessary data inputs whenever required as per the specification discussed and finalized
by the designer.
Bringing the multiple users on the same platform and changing their attitudes toward
information, as a corporate resource, is the managerial task of the system designer. The
qualification, experience, knowledge, of the state of art, and an understanding of the
corporate business, helps considerably, in overcoming the problem of changing the
attitudes of the multiple users and the originators of the data.
c) Life Cycle Approach
There are many systems or subsystems in the MIS which have a life cycle, that is, they
have birth and death. Their emergence may be sudden or may be a part of the business
need, and they are very much structured and rule based. They have 100% clarity of
inputs and their sources, a definite set of outputs in terms of the contents and formats.
These details more or less remain static from the day the system emerges and remains in
that static mode for a long time. Minor modifications or changes do occur but they are not
significant in terms of handling either by the designer or the user of the system. Such
systems, therefore, have a life and they can be developed in a systematic manner, and
can be reviewed after a year or two, for significant modification, if any.
Examples of such systems are pay roll, share accounting, basic financial accounting,
finished goods accounting and dispatching, order processing, and so on. These systems
have a fairly long duration of survival and they contribute in a big way as sources of data
to the Corporate MIS. Therefore, their role is important and needs to be designed from the
viewpoint as an interface to the Corporate MIS.
d) Implementation of the Management Information System
The implementation of the system is a management process. It brings about
organizational change It affects people and changes their work style. The process evokes
a behavior response which could be either favorable or unfavorable depending upon the
strategy of system implementation.
In the process of implementation, the system designer acts as a change agent or a
catalyst. For a successful implementation he has to handle the human factors carefully.
The user of the system has a certain fear complex when a certain cultural work change is
occurring. The first and the foremost fear are about the security to the person if the
changeover from the old to new is not a smooth one. Care has to be taken to assure the
user that such fears are baseless and the responsibility, therefore, rests with the designer.
The second fear is about the role played by the person in the organization and how the
change affects him. On many occasions, the new role may reduce his importance in the
organization, the work design may make the new job impersonal, and a fear complex may
get reinforced that the career prospects may be affected. There are certain guidelines for
the systems designer for successful implementation of the system. The system designer
should not question beyond a limit the information need of the user.
1. Not to forget that his role is to offer a service and not to demand terms.
2. Remember that the system design is for the use of the user and it is not the designer's
prerogative to dictate the design features. In short, the designer should respect the
demands of the user.
3. Not to mix up technical needs with the information needs. He should try to develop
suitable design with appropriate technology to meet the information needs. The designer
should not recommend modifications of the needs, unless technically infeasible.
4. Impress upon the user the global nature of the system design which is required to meet
the current and prospective information need.
5. Not to challenge the application of the information in decision-making. It is the sole
right of the user to use the information the way he thinks proper.
6. Impress upon the user that the quality of information depends on the quality of input.
7. Impress upon the user that you are one of the users in the organization and that the
information is a corporate resource and he is expected to contribute to the development
of the MIS.
8. Ensure that the user makes commitment to all the requirements of the system design
specifications. Ensure that he appreciates that his commitments contribute largely to the
quality of the information and successful implementation of the system.
9. Ensure that the overall system effort has the management's acceptance.
10. Enlist the user's participation from time to time, so that he is emotionally involved in
the process of development.
11. Realize that through serving the user, he is his best guide on the complex path of
development.
12. Not to expect perfect understanding and knowledge from the user as he may be the
user of a non-computerized system. Hence, the designer should be prepared to change
the system specifications or even the design during the course of development.
13. Impress upon the user that the change, which is easily possible in manual system, is
not as easy in the computer system as it calls for changes in the programs at cost.
14. Impress upon the user that perfect information is nonexistent His role therefore still
has an importance in the organization.
15. Ensure that the other organization problems are resolved first before the MIS is taken
for development.
16. Conduct periodical user meetings on systems where you get the opportunity to know
the ongoing difficulties of the users.
17. Train the user in computer appreciation and systems analysis as his perception of the
computerized information system will fall short of the designer's expectation.
Implementation of the MIS in an organization is a process where organizational
transformation takes place. This change can occur in a number of ways. The Lewin's
model suggests three steps in this process. The first step is unfreezing the organization
to make the people more receptive and interested in the change. The second step is
choosing a course of action where the process begins and reaches the desired level of
stability, and the third step is Refreezing, where the change is consolidated and
equilibrium is reinforced. Many a times, this process is implemented through an external
change agent, such as a consultant playing the role of a catalyst.
The significant problem in this task is the resistance to change. The resistance can occur
due to three reasons, viz., the factors internal to the users of information, the factors
inherent in the design of the system and the factors arising out of the interaction
between the system and its users. The problem of resistance can be handled through
education, persuasion, and participation. This can be achieved by improving the human
actors, and providing incentives to the users, and eliminating the organizational problems
before implementing the system.
Systems Analysis
Introduction to Systems Analysis
System analysis is the survey and planning of the project, the study and analysis of the
existing business and information system and the definition of business requirements.
System analysis involves two phases: study phase and definition phase.
o
o
o
o
Survey phase The purpose of the survey phase is to determine the worthiness of the
project and to create a plan to complete those projects, deemed worthy. To accomplish
the survey phase objectives, the system analyst will work with the system owner, system
users, IS manager and IS staff to:
Survey problems, opportunities and solutions
Negotiate project scope
Plan the project
Present the project
SDLC
System development cycle stages are sometimes known as system study. System
concepts which are important in developing business information systems expedite
problem solving and improve the quality of decision-making.
The system analyst has to do a lot in this connection. They are confronted with the
challenging task of creating new systems and planning major changes in the
organization. The system analyst gives a system development project, meaning and
direction. The typical breakdown of an information systems life cycle includes a feasibility
study, requirements, collection and analysis, design, prototyping, implementation,
validation, testing and operation. It may be represented in the form of a block diagram as
shown below:
a)Feasibility study It is concerned with determining the cost effectiveness of various

alternatives in the designs of the information system and the priorities among the various
system components.
b) Requirements, collection and analysis It is concerned with understanding the
mission of the information systems, that is, the application areas of the system within the
enterprise and the problems that the system should solve.
c) Design It is concerned with the specification of the information systems structure.
There are two types of design: database design and application design. The database
design is the design of the database design and the application design is the design of
the application programs.
d) Prototyping A prototype is a simplified implementation that is produced in order to
verify in practice that the previous phases of the design were well conducted.
e) Implementation It is concerned with the programming of the final operational version
of the information system. Implementation alternatives are carefully verifies and
compared.
f) Validation and testing it is the process of assuring that each phase of the
development process is of acceptable quality and is an accurate transformation from the
previous phase.
Roles of Systems Analyst
System analysts are the facilitators of the study of the problem and needs of a business
to determine how the business systems and information technology can best solve the
problem and accomplish improvements for the business. The system analyst is
responsible for examining the total flow of data throughout the organization.
Various aspects of an organization like personnel interactions and procedures for handling
problems of the computer are studied by him. The person involved in the system
development is known as system analyst. His main role is as consultant, supporting and
maintenance expert, he should work with a cross section of people and should have the
experience of working with computers. He is a problem solver and takes problem as a
challenge and enjoys meeting challenges. He knows how to use the right tools,
techniques and experience at the right time.
Feasibility of Systems
Feasibility is a measure of how beneficial the development of an information system

would be to an organization. Feasibility analysis is the activity by which the feasibility is
measured. Feasibility study is a preliminary study which investigates the information
needs of prospective users and determines the resource requirements, costs, benefits
and feasibility of a proposed project. The data is first collected for the feasibility study.
Later on, the findings of the study are formalized in a written report that includes
preliminary specifications and a development plan for the proposed system. If the
management approves these recommendations of the report the development process
can continue.
Types of feasibility
The goal of feasibility study is to evaluate alternative systems and to propose the most
feasible and desirable system for development. The feasibility of a proposed system can
be evaluated in four major categories:
a) Technical feasibility: It is a measure of a technologys suitability to the application
being designed or the technologys ability to work with other technologies. It measures
the practicality of a specified technical solution.
b) Economic feasibility: It is the measure of the cost effectiveness of a project. It is also
known as cost benefit analysis.
c) Operational feasibility: It is a measure of how comfortable the management and
users are with the technology.
d) Schedule feasibility: It is a measure of how reasonable the project schedule is.
DFD
Data flow diagrams represent the logical flow of data within the system. DFD do not
explain how the processes convert the input data into output. They do not explain how
the processing takes place.
DFD uses few symbols like circles and rectangles connected by arrows to represent data
flows. DFD can easily illustrate relationships among data, flows, external entities and
stores. DFD can also be drawn in increasing levels of detail, starting with a summary high
level view and proceeding o more detailed lower level views.
A number of guidelines should be used in constructing DFD.

Choose meaningful names for the symbols on the diagram.
Number the processes consistently. The numbers do not imply the sequence.
Avoid over complex DFD.
Make sure the diagrams are balanced
Data Dictionary
The data dictionary is used to create and store definitions of data, location, format for
storage and other characteristics. The data dictionary can be used to retrieve the
definition of data that has already been used in an application. The data dictionary also
stores some of the description of data structures, such as entities, attributes and
relationships. It can also have software to update itself and to produce reports on its
contents and to answer some of the queries.
Systems Design
Introduction to SD
The business application system demands designing of systems suitable to the
application in project. The major steps involved in the design are the following:
Input Design Input design is defined as the input requirement specification as per a
format required. Input design begins long before the data arrives at the device. The
analyst will have to design source documents, input screens and methods and procedures
for getting the data into the computer.
Output Design The design of the output is based on the requirement of the user
manager, customer etc. The output formats have to very friendly to the user. Therefore
the designer has to ensure the appropriateness of the output format.
Development When the design and its methodology are approved, the system is
developed using appropriate business models. The development has to be in accordance
to a given standard. The norms have to be strictly adhered to.
Testing Exhaustive and thorough testing must be conducted to ascertain whether the
system produces the right results. Testing is time consuming: Test data must be carefully
prepared, results reviewed and corrections made in the system. In some instances, parts
of the system may have to be redesigned. Testing an information system can be broken
down into three types of activities: unit testing, system testing and acceptance test. Unit
testing or program testing consists of testing each program separately in the system. The
purpose of such testing is to guarantee that programs are error free, but this goal is
realistically impossible. Instead, testing should be viewed as a means of locating errors in
programs, focusing on finding all ways to make a program fail. Once pinpointed, problems
can be corrected. System testing tests the functioning of the information system as a
whole. It tries to determine if discrete modules will function together as planned and
whether discrepancies exist between the way the system actually works and the way it
was conceived. Among the areas examined are performance time, capacity for file
storage and handling peak loads, recovery and restart capabilities and manual
procedures. Acceptance testing provides the final certification that the system is ready to
be used in a production setting. Systems tests are evaluated by users and reviewed by
management. When all parties are satisfied that the new system meets their standards,
the system is formally accepted for installation.
Implementation and Maintenance
Conversion is the process of changing from the old system to the new system. Four main
conversion strategies can be employed. They are the parallel strategy, the direct cutover
strategy, the pilot strategy and the phased strategy.
In a parallel strategy both the old system and its potential replacement are run together
for a time until everyone is assure that the new one functions correctly. This is the safest
conversion approach because, in the event of errors or processing disruptions, the old
system can still be used as a backup. But, this approach is very expensive, and additional
staff or resources may be required to run the extra system. The direct cutover strategy
replaces the old system entirely with the new system on an appointed day. At first glance,
this strategy seems less costly than the parallel conversion strategy. But, it is a very risky
approach that can potentially be more costly than parallel activities if serious problems
with the new system are found. There is no other system to fall back on. Dislocations,
disruptions and the cost of corrections are enormous.
The pilot study strategy introduces the new system to only a limited area of the
organization, such as a single department or operating unit. When this version is
complete and working smoothly, it is installed throughout the rest of the organization,
either simultaneously or in stages.
The phased approach strategy introduces the new system in stages, either by functions
or by organizational units. If, for example, the system is introduced by functions, a new
payroll system might begin with hourly workers who are paid weekly, followed six months
later by adding salaried employees( who are paid monthly) to the system. If the system is
introduced by organizational units, corporate headquarters might be converted first,
followed by outlying operating units four months later.
Moving from an old system to a new system requires that end users be trained to use the
new system. Detailed documentation showing how the system works from both a
technical and end-user standpoint is finalized during conversion time for use in training
and everyday operations. Lack of proper training and documentation contributes to
system failure, so this portion of the systems development process is very important.
Production and maintenance

After the new system is installed and conversion is complete, the system is said to be in
production. During this stage the system will be reviewed by both users and technical
specialists to determine how well it has met its original objectives and to decide whether
any revisions or modifications are in order. In some instances, a formal post
implementation audit document will be prepared. After the system has been fine-tuned, it
will need to be maintained while it is in production to correct errors, meet requirements or
improve processing efficiency.
Once a system is fully implemented and is being used in business operations, the
maintenance function begins. Systems maintenance is the monitoring, or necessary
improvements. For example, the implementation of a new system usually results in the
phenomenon known as the learning curve. Personnel who operate and use the system
will make mistake simply because they are familiar with it. Though such errors usually
diminish as experience is gained with a new system, they do point out areas where a
system may be improved.
Maintenance is also necessary for other failures and problems that arise during the
operation of a system. End-users and information systems personnel then perform a
troubleshooting function to determine the causes of and solutions to such problems.
Maintenance also includes making modifications to an established system due to changes
in the business organizations, and new e-business and ecommerce initiatives may require
major changes to current business systems.
DESIGNING AN MIS
A management information systems must be flexible and
adaptive and must have the capacity to accommodate
deficiencies as the system evolves. Procedures should be
developed to detect these deficiencies and to make
adjustments in the system so as to eliminate or reduce them.
Managers, as well as information specialists and operations
researchers, should participate in each phase of the design of
an MIS.
The design of an MIS should begin with an identification of the
important types of strategic, managerial, and operational
decisions required by the organization. Relationships among
decisions should be defined and the flow of decisions should
be determined. Such a decision-flow analysis often reveals
that important decisions are being made by default. For
example, past decisions often may still be binding on the
operations of an organization even though they are no longer
applicable to current problems and procedures. When asked:
"Why do you follow these procedures," all-too-often the
answer is: "Well, that's the way we have always done it."
An analysis of decision flows may also uncover situations in
which interdependent decisions are being made
independently. Frequently changes can be identified that
should be made in the flow of decisions to correct information
deficiencies which may involve (a) the responsibilities of
management, (b) the organizational structure, or (c) measures
of performance.
The next step in the design of an MIS involves an analysis of
the information requirement of the major classes of decisions.
Ackoff has suggested that organizational decisions can be
grouped into three types: (1) decisions for which adequate
models exist or can be developed and from which optimal
solutions can be derived; (2) decisions for which models can
be constructed but from which optimal solutions cannot be
readily extracted; and (3) decisions for which adequate
models cannot be constructed. [1]
In response to the first type of decisions, the model should
have the capacity to identify the relevant information required
for a solution to the problem. The decision process should be
readily incorporated into the MIS (thereby converting it, at
least partially, to a management control system). In the
second case, while the model may specify what information is
required, a further search process may be necessary,
including the examination of alternative approaches, to fully
explicate these information requirements.
Further research is required in the third situation to determine
what information is relevant and how this information can be
organized to address the decision situation. It may be possible
through such research, to make more explicit the implicit
models used by decision makers and in so doing, to treat
such models as type-2 decision situations.
In each of these categories it is appropriate to provide
feedback by comparing actual decision outcomes with those
predicted by the models. It is important that the MIS have the
capacity not only to answer the questions that might be
addressed to it, but also to report any deviations from
expectations (that is, actual decision outcomes that differ from
those predicted). Each decision made, along with its predicted
outcome, should become an input to a management control
system. [2]
As Rapoport has noted, the first step in solving a problem is to

state it.
The statement usually involves a description of an existing
state and desirable state of affairs where the factors involved
in the discrepancy are explicitly pointed out. The success with
which any problem is solved depends to a great extent on the
clarity with which it is stated. In fact, the solution of the

problem is, in a sense, a clarification (or concretization) of the
objectives. [3]
Vague problem statements lead to vague methods, where
success is erratic and questionable. The more a given
problem can be extended through the examination of timely
information about the situation, the greater the promise of a
successful solution.
A distinction should be made among four different types of
problem sets. Most problems that confront complex
organizations represent generic events, of which the specific
occurrence is only a symptom. As a general rule, such
generic situations require adaptive decisions, that is,
decisions which may require considerable reconstruction of
programmed details before they are applicable to a given
problem situation. Adaptive decisions alleviate built-up
pressures by removing the more immediate sources of
demand or by providing satisfactory alternative solutions to
that which is sought. Until the generic problem is identified,
however, significant amounts of time and energy may be
spent in the piecemeal application of adaptive decisions to the
symptoms without ever gaining control of the generic
situation.
The second type of occurrence is one that, although unique in
a given organization, is actually a generic event. For example,
a company's decision on the location of new processing plant
may be a unique situation as far as the present company
officials are concerned. It is, however, a generic situation that
has confronted many other companies in the past. Some
general rules exist for deciding on the best location for such
facilities, and the decision makers can turn to the experience
of others for these guidelines.
The third possible problem classification is the truly unique
situation. Here, the event itself may be unique or the
circumstances in which the event has occurred may be
unique. The huge power failure of November, 1965, for
example, which plunged northeastern North America into
darkness, was a truly exceptional or unique event, at least
according to first explanations. On the other hand, the
collision of two airplanes miles from any air terminal is a
unique situation, not because airplanes do not run the risk of
collision, but because of the unique circumstances under
which the event occurred.

The fourth type of event confronting the decision process is
the early manifestation of a new generic problem. Both the
power failure and the collision of two airplanes, for example,
turned out to be only the first occurrence of what are likely to
become fairly frequent events unless generic solutions are
found to certain problems of modern technology.
As illustrated in Exhibit 1, the relationship among these four
categories can be described in terms of (1) the availability of
rules and principles (information) for dealing with such
problems and (2) the frequency of encounter of these
situation. General principles, rules, or procedures usually can
be developed or adapted to deal with generic situations. Once
an appropriation problem classification has been found, all
manifestations of the same generic situation can be handled
fairly pragmatically by adapting the rules or principles to the
concrete circumstances of the problem situation. In short,
such problems can be handled through adaptive decision
making. The unique problem and the first manifestation of a
generic problem, however, often require greater innovation in
the search for successful solutions.
By far the most common mistake in decision making is to treat
a generic problem as if it were a series of unique events.
Treating a unique event as if it were just another example of
the same old problem to which the same old rules can be
applied can have equally negative repercussions.
The role of the experienced manager is to avoid incomplete
solutions to problems that are only partially understood. The
technical expertise of those individuals closest to the situation
should be used to classify the problem. Settling on a plausible
albeit incomplete definition of the problem is also a danger. A
well-developed management information system can provide
safeguards against an incomplete definition by providing
mechanisms to reject such definitions if an when they fail to
encompass the observed facts regarding the problem.
The outcome of this analysis should be a clear definition of
the problem. If the problem cannot be stated specifically-preferable in one interrogative sentence, including one or
more objectives--the analysis has been inadequate or of
insufficient depth. Emotional bias, habitual or traditional
behavior, and the human tendency to seek the path of least
resistance may contribute to a superficial analysis, followed by
a statement of the apparent rather than the real problem. An

excellent solution to an apparent problem will not work in
practice, because it is the solution to a problem that does not
exist in fact. Short-circuiting this phase in the process may
actually result in more time spent later to get at the real
problem when it becomes painfully evident that further
analysis is required.
Exhibit 1Problem Definition and Classification
Availability of Rules & PrinciplesHigh Nonrecurrent Generic
Problem Generic Problem Adaptive Decision Process Unique
Problem First Manifestation of a Generic Problem Innovative
Decision Process Low High Frequency of Encounter
The basic components of an MIS applicable to the information

needs of financial planning and management control are
illustrated in Exhibit 2. Three specific data areas provide
inputs for the formulations of strategic decisions: (1)
environmental intelligence--data about the broader
environment of which the organization is a part, including
assessments of client needs; (2) auto intelligence--data about
the component elements of the particular organization,
including an evaluation of organizational resources and its
capacity to respond to client needs; and (3) historic data,
which bring together and analyze the lessons of past
experience. These data are stored in the memory banks of the
organization to be retrieved when particular decision
situations arise or when a broader assessment of the overall
goals and objectives of the organization is appropriate.
Basic research and analysis are essential to effective fiscal
planning and management control. Data must be
systematically collected and stored for future use and
reference. Data can be generated externally (e.g., relevant
national data, macro-trend analyses, etc.) or internally (e.g.,
accounting and other fiscal management data). Basic analysis
can be carried out using various modeling programs available
in a well-constructed MIS. The results can be stored in the
data base for reference and updating. The diagnosis of trends
can be aided, in part, by the modeling and simulation
programs and statistical analysis packages.
Forecasts of the probable outcomes of events can be
developed on these data foundations. Probable happenings
are outlined by assuming the continuance of existing trends
into hypothetical futures. These forecasts provide an

important inputs in determining organizational objectives--an
initial impetus for strategic planning.
While computer-based data have not been used extensively in
the formulation of goals and objectives, an MIS can aid in the
development and evaluation of such statements. Objectives
can be written so as to take fuller advantage of available
information in the system. Addition-ally, written objectives can
be stored, permitting easy access, change, and output. Once
objectives have been determined (at least in preliminary
fashion), the planning process can begin to suggest possible
directions that the organization can take in response to client
needs in the broader environment. Two important initiatives
are important in this regard: (1) the search for possible new
courses of action to improve the overall performance of the
organization; and (2) a framework for resource management
and control.
The same system components used in the basic research and
analysis phase can be applied in the formulation and analysis
of alternatives. The analysis of alternative must build on the
basic analyses previously carried out, and therefore,
significant use must be made of the storage and query
capabilities of the DBMS. The results of previous decisions
and program actions are combined through policy and
resource recommendations. In this capacity, the MIS can be
useful in the storage and retrieval of needed information and
in report generation.
Tactical and technical innovations must be sought to improve
the overall responsiveness of the organization (in the private
sector, these innovations also improve the competitive
position of the organization). Various "what if" scenarios may
be tested through the analytical subroutines contained within
the MIS.
Management plans must translate the overall intent of
strategic plans into more specific programs and activities.
Management plans are both information demanding and
information producing. The budget process provides important
managerial feedback in terms of evaluations of prior program
decisions and actions. Feedforward information emerges from
the various projections and forecasts that are required by
financial analysis and budgeting processes.
Management control activities draw on the memory banks of
the organization in search for programmed decisions-decisions that have worked successfully in the past. Timely
resource evaluations also provide important inputs into the
process. These evaluations include information regarding the
current fiscal status of the organization (accounting data), as
well as the overall response capacity of other organizational
resources (systems readiness). The process should provide
critical feedback to the further refinement of objectives. In
some cases, this feedback will require a recycling before
proceeding to the next phase.
Program development involves the activities of task
identification and budgeting. Specific operations are detailed
within the framework provided by the strategic plan and fiscal
planning decisions. Responsibilities for carrying out these
operations are assigned, as are the resources required by
these operations. Specific operations may be further detailed
through the procedures of operations planning and control
(which may include such techniques as Program Evaluation
Review Technique (PERT) and Critical Path Method (CPM)).
Programming and scheduling procedures usually require
further information regarding resource capabilities. They also
may precipitate a recycling of the fiscal planning process.
The final component of the MIS involves the information
derived from performance evaluations. Performance
evaluation draws data from the broader environment
regarding the efficiency and effectiveness with which client
needs are met, problems are solved, opportunities are
realized, and so forth. Some writers view performance
evaluation as a separate process outside the management
information system. Others recognize the importance of
incorporating the data and information developed through
such evaluations by referring to a management information
and program evaluation system [4]
A basic problem of organizations today--whether in the public
or private sectors--is to achieve an appropriate balance in
programs and decisions to ensure systems readiness.
Systems readiness defines the response capacity of the
organization in the short-, mid-, and long-range futures.
Sufficient flexibility is required to meet a wide range of
possible competitive actions. The development and
maintenance of an MIS that includes the basic components
outlined herein can contribute significantly to meeting this
challenge.
Feedback is a basic requirement of any MIS. Feedback must

be obtained in terms of quality (effectiveness), quantity
(efficiency of service levels), cost, and so on. Programs must
be monitored to maintain process control. Evaluations of
resources (inputs) provide feedback at the earliest stages of
program implementation.
Feedback data must be collected and analyzed at various
stages in the implementation of programs and the
maintenance of ongoing operations. These analyses involve
processing data, developing information, and comparing
actual results with plans and expectations. Routine
adjustments may be programmed into the set of ongoing
procedures, and instructions can be provided to those
individuals who must carry out specific tasks. Feedback from
the operating systems provides an information flow within the
management control procedures to initiate and implement
program changes in a more timely basis. Thus, procedures
are modified and files updated simultaneously with routine
decision making and program adjustments.
Summary and exception reports may be generated by the MIS
and become part of higher-level reviews and evaluations.
These evaluations, in turn, may lead to adaptations or
innovations of goals and objectives. Subsequent management
activities should reflect such feedback, and the entire process
is recycled.
Managers must seek data and information that will permit
actions to be taken before problems reach crisis proportions.
Historic data provided by conventional accounting systems
may be insufficient to meet these decision needs (even when
the time lag is only a few weeks). Resource evaluations on the
input side and resource monitoring as programs or projects
progress can provide the more timely information required to
anticipate rather than merely to react to problems.
An information system appropriate for fiscal planning and
management control must use feedforward as well as control
based on feedback. Feedforward anticipates lags in feedback
systems by monitoring inputs and predicting their effects on
output variables. In so doing, action can be taken to change
inputs and, thereby, to bring the outputs into equilibrium with
desired results before the measurement of outputs discloses a
deviation from accepted standards.
In time, an organization "learns" through the processes of
planning, implementation, and feedback. [5] Approaches to

decision making and the propensity to select certain means
and ends change as the value system of the organization
evolves.
Endnotes [1] Russell L. Ackoff, "Management Misinformation
Systems," Management Science (Application Series) 14
(December 1967), reprinted in Donald H. Sanders and
Stanley J. Birkin, Computers and Management in a Changing
Society (New York: McGraw-Hill, 1980), p. 44. [2] Ibid., p. 45.
[3] Anatol Rapoport, "What Is Information?" ETC: A Review of
General Semantics Vol. 10 (Summer, 1953), p. 252. [4] For a
further discussion of the concepts of MIPES, see: Alan Walter
Steiss, Public Budgeting and Management (Lexington, Mass.:
Lexington Books, D.C. Heath, 1972), chap. 10 [5] Richard M.
Cyert and James G. March, A Behavioral Theory of the Firm
(Englewood Cliffs, N.J.: Prentice-Hall, 1963), p. 123.

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Session 1.

Management information systems

Plenary participatory lecture

Management information systems

Requirements during the planning process

Requirements for controlling

Perceiving the system

Basic parts of the organization

Why a systems approach

MIS as a pyramid structure

Conceptual basis of MIS

Implications of the organizational structure for MIS

Information requirements for MIS

Strategies for determining information requirements

Strategy for determining data requirements

The MIS process

Strategies for determining MIS design

Session guide: Management information systems

MIS principal concerns

2. Identifying activities required to achieve the stipulated objectives

3. Describing the resources or skills, or both, necessary to perform the activities

4. Defining the duration of each activity to be undertaken

5. Determining the sequence of the activities

2. The formal and informal organization

3. Patterns of behaviour arising out of role demands of the organization

4. The role perception of the individual

5. The physical environment in which individuals work

2. Identify process uncertainties:

Discovering from experimentation

Reading note: Management information systems

Information and the MIS concept

Information and the MIS concept

Management and the MIS process

Elements of decision making

Organizational structure and MIS

Information requirements for MIS

Implications for Information Systems

Information system applications have to fit the specialization of the

Information systems are a major method for increasing formalization.

Information systems can be designed to suit any level of

Modification of basic Information systems can be designed to support product or service

Information model of Organizational mechanisms reduce the need for information

Organizational culture Organizational culture affects information requirements and system

Organizational power Organizational power affects organizational behaviour during

When identifying goals during requirements determination, care

Suggests need for information system design for efficiency measures

Systems that promote Reporting critical change variables, organizational change, or

Provides approach to requirements determination and job design when

Source: Taken from Gordon and Olson, 1984: 358-359.

Strategies for determining information requirements

3. Identify the process uncertainties

5. Considering the overall requirements uncertainty, choose a primary strategy for

6. Select an appropriate method.

2. Analyse the information requirements of the organization

3. Plan overall strategy

7. Detailed fact finding

12. Obtain conceptual schema

13. Recruit database administrator

14. Obtain logical schema

15. Create data dictionary

16. Obtain physical schema

17. Create database

18. Modify data dictionary

19. Develop sub-schemas