Learning stage one

Key note Address - 2

Role of the Management Information System

 Role of the Management Information System cont..
• The role of the MIS in an organization can be
compared to the role of heart in the body.
• The information is the blood and MIS is the
heart.
• The heart works faster and supplies more
blood when needed.
• The system ensures that an appropriate data is
collected from the various sources, processed,
and sent further to all the needy destinations.
Some of the important roles of the MIS
I. The MIS satisfies the diverse needs through
variety of systems such as query system, analysis
system, modeling system and decision support
system.
II. The MIS helps in strategic planning, management
control, operational control and transaction
processing. The MIS helps in the clerical personal
in the transaction processing and answers the
queries on the data pertaining to the transaction,
the status of a particular record and reference
on a variety of documents.
 Importance of MIS can't…
III. The MIS helps the junior management personnel
by providing the operational data for planning,
scheduling and control , and helps them further
in decision-making at the operation level to
correct an out of control situation.
IV. The MIS helps the middle management in short
term planning, target setting and controlling the

business functions. It is supported by the use of

the management tools of planning and control.
 Importance of MIS can't…
V. The MIS helps the top level management in
goal setting, strategic planning and evolving
the business plans and their implementation.
VI. The MIS plays the role of information
generation, communication, problem
identification and helps in the process of
decision-making.
The MIS, therefore, plays a vital role in the
management, administration and operation of an
organization.
 Impact of the Management Information System

• Since, the MIS plays a very important role in

the organization, it creates an impact on the
organization’s functions, performance and
productivity.
• With a good support, the management of
marking, finance, production and personnel
become more efficient.
• A disciplined information reporting system
creates a structured data and a knowledge
base for all the people in the organization.
 Impact of the (MIS) cont.…
• The MIS creates another impact in the
organization which relates to the understanding
of the business itself.
• The MIS begins with the definition of a data
entity and its attributes.
• The MIS calls for a systemization of the business
operation for an affective system design.
• A well designed system with a focus on the
manger makes an impact on the managerial
efficiency.
 Approaches to Management
Frederick Winslow Taylor is recognized as the father
of scientific management. His principles can be
summarized as follows:
1. Replace the rules of thump with scientific rules.
2. Obtain a harmony in group action.
3. Achieve cooperation of human beings, rather
than chaotic individualism.
4. Work for a maximum output.
5. Develop all workers to the possible potential for
their own highest possible prosperity.
 Approaches to Management cont.…
• Fayol regarded the elements of management as
planning, organizing, commanding, coordinating
and controlling.
• He believed that the operational management
would succeed through the elements of
management.
• Hawthorne’s studies brought out the theory that
man is “Social Animal” operating in the socio-
technical system and, therefore, the emphasis in
effective management is on behavioral sciences.
 Approaches to Management cont.…
• Chester Barnard advocated the theory of systems
as an approach to the management.
• Barnard said that due to the physical and biological
limitations of individuals, they cooperate in the
work environment.
• The cooperation increases with effective and
efficient incentives.
• He further said that the cooperation is more
effective if the members of the group communicate
with one another, are willing to contribute to group
action, and have a conscious common purpose.
 Fayol's 14 Principles of Management
1. Division of Work – When employees are specialized,
output can increase because they become increasingly
skilled and efficient.
2. Authority – Managers must have the authority to give
orders, but they must also keep in mind that with
authority comes responsibility.
3. Discipline – Discipline must be upheld in organizations, but
methods for doing so can vary.
4. Unity of Command – Employees should have only one
direct supervisor.
5. Unity of Direction – Teams with the same objective should
be working under the direction of one manager, using one
plan. This will ensure that action is properly coordinated.
 Fayol's 14 Principles of Mgt cont...
6. Subordination of Individual Interests to the
General Interest – The interests of one employee
should not be allowed to become more
important than those of the group. This includes
managers.
7. Remuneration – Employee satisfaction depends
on fair remuneration for everyone. This includes
financial and non-financial compensation.
8. Centralization – This principle refers to how close
employees are to the decision-making process.
 Fayol's 14 Principles of Mgt cont...
9. Scalar Chain – Employees should be aware of where they
stand in the organization's hierarchy, or chain of command.
10. Order – The workplace facilities must be clean, tidy and safe
for employees. Everything should have its place.
11. Equity – Managers should be fair to staff at all times, both
maintaining discipline as necessary and acting with kindness
where appropriate.
12. Stability of Tenure of Personnel – Managers should strive to
minimize employee turnover.
13. Initiative – Employees should be given the necessary level of
freedom to create and carry out plans.
14. Esprit de Corps – Organizations should strive to promote team
spirit and unity.
 Fayol's Six Functions of Management

Fayol's six primary functions of management, which go

hand in hand with the Principles, are as follows:
1. Forecasting.
2. Planning.
3. Organizing.
4. Commanding.
5. Coordinating.
6. Controlling.
These principles have been broken into operational
functions such as technical, commercial, financial,
security, accounting, and so on. He evolved the principles
of operational management.