Management Information

Systems in Organization
(OEIT- 14602)
Prepared and Presented By:
Prof. Inderjeet Singh
(Asstt. Prof.- Deptt. of I.T.)
Guru Nanak Dev Engg. College, Ldh.
 Learning Outcomes
• Students will be able to achieve following Learning Outcomes
after the completion of this Course.
• Understand the need of MIS in organization, business process integration
with IT
• Define SCM, CRM, ESS, DSS, EDI & E-Commerce
• Identify, formulate and implement different strategies for competitive
advantage
• Study and analyze the Business Intelligence techniques
• Monitor the challenges and changes in IT in an organization
Outline
• Introduction to Information System
• Information System (IS)
• Components of an IS
• Information in organizational function
• Types of Information Technology
• Types of IS
• Managing in Internet Era
• Introduction to Management Information System (MIS) in Organization
• Challenges for Manager
• Decision making with MIS
• Communication in an organization
What is System?
• System is regularly interacting or independent group of items forming unified
whole
• Every system is delineated by its spatial and temporal boundaries, surrounded
and influenced by its environment, described by its structure and purpose and
expressed in its functioning.
Information System
• A set of interrelated components that collect (or retrieve),
process, store, and distribute information to support
decision making and control in an organization
• Group of components that interact to produce
information
• Contain information about significant people, places,
things, within organization or environment surrounding
Information vs Data

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

Characteristics of Good Information
• Valid and Reliable
• Timely
• Fit for purpose
• Accessible
• Cost Effective
• Right level of Granularity
• Complete
• Accurate
• Meaningful format
Activities in Information Processing

Source: https://www.s-cool.co.uk/gcse/pe/sports-psychology/revise-it/information-processing-and-feedback
Functions of an Information System

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

Components of an Information System

Source: https://eduladder.com/viewquestions/147/Explain-components-of-information-system
Dimensions of an Information System
• They are more than just a computer System

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

LEVELS IN A FIRM

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

LEVELS IN A FIRM (More Detailed)
Information in Organizational Function
• Can be classified in broader three categories
• Information for Transaction Processing System– By Workers
• For Persons involved in day to day activities, operational decisions
• Functions involved like Payroll systems, Order Processing systems, Reservation systems etc.

• Information for Managerial Level System– By Middle Level Managers

• For Persons involved in relatively structured decisions, little analytical
• Functions involved like Sales management system, inventory control systems, management
reporting systems, personnel management etc.

• Information for Decision Support System– By Top Most Executives

• For Persons involved in knowledge based decisions, analytical and modelling capacity,
predicting future
• Functions involved like Summary Reports, Forecasts etc.
Information in Organization- 3 level model

Source: http://www.chris-kimble.com/Courses/World_Med_MBA/Types-of-Information-System.html
Information in Organization- 4 level model

Source: http://www.chris-kimble.com/Courses/World_Med_MBA/Types-of-Information-System.html
Information in Organization- 5 level model

Source: http://www.chris-kimble.com/Courses/World_Med_MBA/Types-of-Information-System.html
Types of Information Technology

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

How IT Improves Business Process?

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

Functional Business Processes

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

Types of Information System- in Organization
• Transaction Processing System
• Management Information System
• Executive Information System
Transaction Processing System (TPS)
• Provides information that keep track of elementary activities and transactions
like Sales, Receipts, Cash Deposits, Payroll, Credit Decisions and flow of
materials
• TPS- computerized system performs and records the daily routine transactions
necessary to conduct business (Operational Level)
• At operational Level– tasks, resources and goals – predefined and highly
structured
• Major producers for the other systems and business functions
• So often central to a business, that failure of few hours can lead to firm’s demise
and perhaps other linked too.
Transaction Processing Features
• Performance
• Fast Performance with rapid response time critical.

• Continuous Availability
• System must be available for the time user entering transactions

• Data Integrity
• System must be able to handle h/w and s/w issues without corrupting data

• Ease of Use
• System must be simple to understand, protect from data entry errors as much as
possible

• Modular Growth
• System should be capable of growth at incremental costs, rather complete
replacement.
Types of Transaction Processing
• Processing in Batches
• Processing in Real Time
Transaction Processing System- Example

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

A Model for Problem Solving
• Decision Making Phase
• Intelligence gathering
• Design
• Choice

• Implementation
• Monitoring
Decision Making
• A step in problem solving
• Intelligence gathering
• Definition of problem
• Data gathered on scope
• Constraints identified

• Design phase
• Alternatives identified and assessed

• Choice
• Selection of an alternative
Structured vs. Unstructured Problems
• Structured problems lend themselves to
programmed decisions
• The implication is that a repeatable process can
be employed and these can be automated–
those involved in TPS
• Unstructured problems require unprogrammed
decisions– those involved in MIS and EIS
Management Information System
• Refers to processing of information through computer and other intelligent
devices to manage and support managerial decisions within an organization.
• MIS professionals help organizations to maximize the benefit from investments
in personnel, equipment, and business process.
• There are different areas of concentration with different duties and
responsibilities in information system managers starting from the Chief
information officer (CIOs), Chief technology officer (CTOs), IT directors and IT
security managers.
Kenneth and Aldrich Estel – Five Eras
• Mainframe and Minicomputer Computing
• Personal computers
• Client/ Server Networks
• Enterprise Computing
• Cloud Computing
Types and Terminologies- MIS
• Management information systems, produce fixed, regularly scheduled reports
based on data extracted and summarized from the firm's underlying transaction
processing systems[4] to middle and operational level managers to identify and
inform semi-structured decision problems.
• Decision support systems (DSS) are computer program applications used by middle
and higher management to compile information from a wide range of sources to
support problem solving and decision making. A DSS is used mostly for semi-
structured and unstructured decision problems.
• Executive information systems (EIS) is a reporting tool that provides quick access to
summarized reports coming from all company levels and departments such as
accounting, human resources and operations.
• Marketing Information Systems are Management Information Systems designed
specifically for managing the marketing aspects of the business
Types and Terminologies- MIS
• Office automation systems (OAS) support communication and productivity in the
enterprise by automating workflow and eliminating bottlenecks. OAS may be
implemented at any and all levels of management.
• School Information Management Systems (SIMS) cover school administration, and
often including teaching and learning materials.
• Enterprise resource planning facilitates the flow of information between all business
functions inside the boundaries of the organization and manage the connections to
outside stakeholders.
Features of MIS
• Data Collection
• Report Generation
• Accessibility and Integration
• Scalability
MIS- in Organization

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

MIS- Reports

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

Decision Support System
• Support more non-routine in decision making
• Focus- on problem unique and rapidly changing
• To answer questions like
• What would be impact on production schedules if we were to double sales in month of
December?
• What would happen to our return on investment if a factory schedules were delayed for six
months?

• DSS- use internal information from TPS and MIS

• Use variety of models to analyze the data
• Example-- DSS is the voyage-estimating system of a subsidiary of a large American
metals company that exists primarily to carry bulk cargoes of coal, oil, ores, and finished
products for its parent company.
 Decision Support System
• DSS generally provide support for unstructured, or semi-structured decisions
(decisions that cannot be described in detail).
• DSS problems are often characterized by incomplete or uncertain knowledge, or the
use of qualitative data.
• DSS will often include modelling tools in them, where various alternative scenarios can
be modeled and compared.
• Investment decisions are an examples of those that might be supported by DSS
Voyage Estimation DSS

Source: MIS by Kenneth C. Laudon, Jane P. Laudon

MIS vs DSS
S.NO. MIS DSS
1. The main focus is on the structured tasks and Focus is mainly on the semi / un-
the routine decisions. structured tasks, which demand the
managerial judgment.
2. Identifies the information requirement. Develops certain tools for using in
the decision process.
3. Data storage is of great importance The main emphasis is on the data –
manipulation.
4. Delivers system depending on the frozen Current data can be used in the
requirements. Decision Support System.
5. Only the in – direct access to the data by the Managers enjoy direct access to the
managers is provided. data.
6. Very much dependent on the computer Depends on the managerial
expert. judgment.
MIS vs DSS
S.NO. MIS DSS
7. Access to the data possibly requiring a ‘wait’ Waiting is not at all required.
for the manager’s turn.
8. MIS manager may not completely understand Manager possesses the knowledge
the nature of the decision. about the nature of the decision and
the decision making environment.
9. Main stress is on the efficiency. Main emphasis is laid on the
effectiveness.
Executive Information System
• Helps senior management- to take decisions
• Address non-routine decisions, judgements, evaluation, insights,
• No aggreged standards of procedure
• ESS- is computing approach for EIS and presents data, facts in much
more analytical form- like Graphs, Charts for a time frequency
• Offer strong reporting and drill-down capabilities
• EIS and Data Warehousing– converging in market place
Components- EIS
• Hardware
• Software
• User Interface
• Telecommunications
Characteristics of EIS
• Informational characteristics
• Flexibility and ease of use.
• Provides the timely information with the short response time and also with
the quick retrieval.
• Produces the correct information.
• Produces the relevant information.
• Produces the validated information.
Characteristics of EIS
• User interface/orientation characteristics
• Consists of the sophisticated self help.
• Contains the user friendly interfaces consisting of the graphic user.
• Can be used from many places.
• Offers secure reliable, confidential access along with the access procedure.
• Is very much customized.
• Suites the management style of the individual executives.
Characteristics of EIS
• Managerial / executive characteristics
• Supports the over all vision, mission and the strategy.
• Provides the support for the strategic management.
• Sometimes helps to deal with the situations that have a high degree of risk.
• Is linked to the value added business processes.
• Supports the need/ access for/ to the external data/ databases.
• Is very much result oriented in the nature.
EIS- Example
Advantages of EIS
• Easy for upper-level executives to use, extensive computer experience is
not required in operations
• Provides strong drill-down capabilities to better analyze the given
information.
• Information that is provided is better understood
• EIS provides timely delivery of information. Management can make
decisions promptly.
• Improves tracking information
• Offers efficiency to decision makers
Managing in the Internet era
• New Era in organizational structure- characterized by
• Horizontal organization
• High degree of decentralization
• Democratic style of decision making
• High level of flexibility and adaptability- market changes

• Managers- lose exclusive right- control outcome of trust

• Management- in these areas to meet- multiple parameters
• Planning
• Organizing
• Managing
• Communicating
• Controlling
• Motivating
• Effective action
• Creating pleasant and stimulating environment
• Innovation
• Recognition of Talent
• Management of HR
Characteristics- Management in
Internet Environment
• New, Digital/ IT economy- indicates amount of internal, fundamental change-
modern economic theory and practice
• Visible manifestation– economic globalization
• Technological progress- cause and consequences– economic globalization
• New, unique and universal standards– stimulates– technologies, hence
globalization
• Digitization– emerging common- denominator
• Internet, where divers technologies- can compete- with common goal- ‘meeting
business and private user’s communication’
• ICT- have merged into single Internet technology– affecting national,
international overall
• Interaction- between internet entities– number of synergies, new quality of
relations
• However, what increases in digital divide
Seven Major Trends– New Economy
• Cyber Economy– most expressive form of E-commerce
• Teleworking
• Role of buyers and their impact– on work organization
• Services and information- becoming commodities
• Customer- becoming more and more virtual
• New types of cooperation and community
• Life long Learning
Factors- affecting changes-
Organizational Behavior
• Intensive use of ICT, Internet Technologies
• General process of Globalization, dynamism, uncertainty
• Substantial changes that take place in global companies
Implications of IT on HR Management
• Lepak and Snell (1998) divided electronic HRM into 3 parts:
• Operational e-HRM
• Relational e-HRM
• Transformational e-HRM

Operational E-HRM is concerned with administrative functions - payroll

and employee personal data for example. Relational E-HRM is concerned
with supporting business processes by means of training, recruitment,
performance management and so forth. Transformational E-HRM is
concerned with strategic HR activities such as knowledge management,
strategic re-orientation.
Organization and IT
Organization
• A stable, formal social structure that takes resources from the
environment and process them to produce outputs
• Technical definition focus on
• Capital and Labor
• Organization transforms the inputs- products and services
• Products and services

• More stable than informal groups in terms of longevity and routineness

• A more realistic behavioral definition of an organization is that it is a
collection of rights, privileges, obligations, and responsibilities that is
delicately balanced over a period of time through conflict and conflict
resolution
Behavioral View of Organization
Features of an Organization
• Routines and Business Processes
• Organizational Politics
• Organizational culture
• Organizational environment
• Organizational Structure– Mintzberg classification
• Other Organizational features– Some coercive goals, utilitarian goals,
normative goals
Organizational Environments
Organizational Structure
MIS in organization- IT Interaction Model
• The IT interaction model is a holistic view of Management
Information Systems in the context of the organization.
According to Mark S. Silver, the model addresses the
interaction of an information system's features with five
elements of the organization.
• Its external environment
• Its strategy
• Its structure and culture
• Its business processes
• Its IT infrastructure.
Porter’s Competitive Forces Model
Internet Impact on Competitive Forces
Dealing Competitive Forces
Challenges for Managers
• ECONOMIC PRESSURE
• GLOBALIZATION
• INNOVATION
• CHANGE
• CUSTOMER SERVICE
• EMPLOYEES SATISFACTION
• ORGANIZATION ETHICS
• SOCIAL RESPONSIBILITY (CORPORATE SOCIAL RESPONSIBILITY)
• PRESSURE FROM WORLD ORGANIZATION
Corporate Social Initiatives
Corporate social responsibility includes six types of corporate social initiatives

• Corporate philanthropy: company donations to charity, including cash, goods, and services, sometimes via
a corporate foundation

• Community volunteering: company-organized volunteer activities, sometimes while an employee receives

pay for pro-bono work on behalf of a non-profit organization

• Socially-responsible business practices: ethically produced products which appeal to a customer segment

• Cause promotions: company-funded advocacy campaigns

• Cause-related marketing: donations to charity based on product sales

• Corporate social marketing: company-funded behavior-change campaigns

Communication Process as Mechanistic System
Organizational Communication
• Definition 1: Communication is sending and receiving of messages by
means of symbols and in that context organizational communication is a
key element of organizational climate
• Definition 2: Communication can be understood as a process of
exchanging signs and symbols instigated and led by at least one of the
conscious subjects
• Definition 3: Communication is transfer of information from sender to
receiver under the condition that the receiver understands the message
• Definition 4: Communication is a tool for exchanging of experience and
values as well as transfer of meanings and knowledge4
Several Approaches to Function of
Organizational Communication
• One approach based on
• Control of employees behavior
• Motivation of employees
• Development of interpersonal relations
• Making decision

• Second Approach
• Compliance gaining
• Leading, motivating and influencing
• Sense – making
• Problem – solving and decision making
• Conflict management, negotiating and bargaining
Process of Organizational Communication
Types of Organizational Communication
• Downward Communication
• Upward Communication
• Horizontal Communication
• Diagonal Communication
Methods of Organizational Communication
• Written Communication
• Oral Communication
• Formal
• Informal

• Non Verbal Communication

Types of Hearsay (Informal) communication
• The single–strand chain: In this chain one person transfers a message to another
that forwards the same to the third person, and that person transfers it to the fourth
person etc. This makes an endless communication chain.
• The gossip chain: An individual transfers a message to everybody that he/she
meets, and everybody can, does not mean they will, transfer this message further.
• The probability chain: In this chain an individual communicates randomly to
other persons.
• The cluster chain: In this chain a person transfers the information only to defined
and selected persons.
Communication Issues
Types of Meetings
• Objective meetings: The focus of these meetings is on facts and these types of
meetings are good for analysis of problem background and for recognition of strengths
and weaknesses.
• Creative meetings: These types of meetings are good for strategic options development
and in these meeting the participants are encouraged to present their opinions.
• Inspirational meetings: These types of meetings are focused on participant’s
inspiration, for example development of company vision.
• Estimation meetings: These types of meetings are focused on “for” and “against” some
opinions. They are very useful after preliminary results of creative and inspirational
meetings.
• Decision making meetings: These meetings are focused on final making decision.
Communication Technologies
Barriers to Effective Communication
• Physical Barrier– like Sound, Noise, Location, Equipment etc.
• System Design: System design faults refer to problems with the structures or systems in
place in an organization. Examples might include an organizational structure which is
unclear and therefore makes it confusing to know who to communicate with.
• Attitudinal barriers: Attitudinal barriers come about as a result of problems with staff in
an organisation. These may be brought about, for example, by such factors as poor
management, lack of consultation with employees, personality conflicts
• Ambiguity of Words/Phrases: Words sounding the same but having different meaning can
convey a different meaning altogether.
• Individual linguistic ability is also important. The use of difficult or inappropriate words
in communication can prevent people from understanding the message.
• Physiological barriers: may result from individuals' personal discomfort, caused—for
example—by ill health, poor eyesight or hearing difficulties.
• Presentation of information: is also important to aid understanding
Change Communication Model–
Effective Communication
CONCLUDED…