FUNDAMENTALS OF

MANAGEMENT
INFORMATION SYSTEM
COVERAGE

1. Information Systems: Basic Concepts

2. Definition of MIS
3. Objective of MIS
4. Value Added Through Improved MIS
5. Properties of an Effective & Efficient MIS
6. Guidelines in Designing an Efficient MIS
7. MIS Development
8. Business Information System
9. Primary Mgt. Information Subsystems
10. Secondary Mgt. Information Subsystems
BASIC CONCEPTS

• Data: raw fact/figure from w/c conclusion can be

drawn
• Information: processed data that is meaningful &
useful to users
• System: entity of interacting parts that are
coordinated to achieve common objective(s)
• Information system: framework in w/c data are
collected, processed, controlled & managed thru
stages to provide info to users
MGT. INFORMATION SYSTEM (MIS)

- Means by w/c info is provided to decision makers,

allowing them to make decisions optimizing the
interrelationships of resources, in achieving
organizational goals
- Primary MIS function: provide mechanism for
exercise of management.
OBJECTIVE OF MIS

• To provide accurate, timely & meaningful info for

mgt.:
- Planning
- Analysis
- Control
- Decision making
to optimize org. performance
VALUE ADDED THRU IMPROVED MIS

1. More complete & relevant info

2. Managers can focus on higher-level problems
3. More timely decisions
4. Increased confidence in decision making
5. Resources focused where it will do the most good
PROPERTIES OF EFFECTIVE & EFFICIENT MIS
1. Relevance – ability to define & support necessary
action by appropriate persons
2. Accuracy – Ratio of correct info to total info
produced over a time period
3. Completeness – provides all info needed for a
decision
4. Timeliness – response interval doesn’t impair
opportunity to act
5. Conciseness – summarizes/extracts needed info only
6. Flexibility – adaptable to changing conditions &
needs
7. Economy – benefits = or > costs
GUIDELINES IN DESIGNING AN EFFICIENT MIS

1. Apply resources to identified problems only

2. Work w/ facts, not opinion
3. Work on causes, not effects
4. Simple activities
5. Capture data close to source
6. Keep user in mind
7. Involve people affected by changes
8. Select eqpt. compatible to job req’ts.; design
system to maximize eqpt. use
9. Follow, evaluate, correct
MIS DEVELOPMENT

Key tasks:
1. Define goals & priorities
2. Identify key success factors
3. Design system structure to achieve goals &
priorities
4. Implement system
5. Monitor & control system
BUSINESS INFORMATION SYSTEM

•In a typical business org. :

• 3 primary mgt. info subsystems
• Varying, indefinite no. of secondary subsystems

• Primary subystem: affects entire org. structure

• Secondary subsystem: confined to a single
functional part of org.
PRIMARY MGT. INFORMATION SUBSYSTEMS
- Include:
1. Logistics Information System
2. Financial Information System
3. Personnel Information System
Logistics Information System
- Concerned w/ physical flow of inventories &
resources
- Includes:
- Inventory control
- Production planning & control
- Scheduling
- Distribution
PRIMARY MGT. INFORMATION SUBSYSTEMS

Financial Information System

- Concerned w/ flow of financial resources
Personnel Information System
- Concerned w/ flow of employee information
SECONDARY MGT. INFORMATION
SUBSYSTEMS
A. Logistics Information System
1. Purchasing Subsystems
- Vendor selection
- Ordering
- Transportation
- Receiving
- Inspection
- Control
SECONDARY MGT. INFORMATION
SUBSYSTEMS
A. Logistics Information System (cont’d)
2. Production Subsystems
- Scheduling
- Dispatching
- Operation
- Inspection
- Packaging
- Shipping
- Control
SECONDARY MGT. INFORMATION
SUBSYSTEMS
A. Logistics Information System (cont’d)
3. Marketing Subsystems
- Product statistics
- Customer histories
- Product planning
- Customer service
- Product delivery
- Pricing
- Forecasting
- Control
SECONDARY MGT. INFORMATION
SUBSYSTEMS
A. Logistics Information System (cont’d)
4. Order Processing Subsystem
- Originating
- Editing
- Pricing
- Billing
- Credit & Collection
- Control
SECONDARY MGT. INFORMATION
SUBSYSTEMS
B. Financial Information System
Financial subsystems:
- Treasury
- Financial accounting
- Managerial/cost acctg.
- Tax acctg.
- Payroll
- Planning
- Control
SECONDARY MGT. INFORMATION
SUBSYSTEMS
C. Personnel Information System
Personnel Subsystems:
- Candidate selection
- Employee histories
- Manpower distribution
- Regulatory compliance
- Training
- Welfare & safety
- Compensation
- Control
SECONDARY MGT. INFORMATION
SUBSYSTEMS
Other impt. secondary subsystems:
- Research & dev’t information subsystem
- Strategic planning & policy-making subsystem