MIS structure and management activities

By- Anita Sharma Deepali Jain

Definitions of MIS Deconstructing the term MIS enables us to define each word in a business context: Management - being managed or people managing a business. Over recent years management has become more scientific and system-oriented.

Information - knowledge made available to people within an organization.

Systems - sets of connected things or parts within an organization which tie the planning and control by managers to the various operations.

Subsystems
MIS include a number of subsystems, such as the following. 1.Management reporting systems (MRS) generate reports for decisionmaking processes. 2.Decision support systems (DSS) provide a set of easy-to-use modeling, retrieving and reporting requirements and are used by people making decisions. 3.Office information systems (OIS) involve the use of computer-based office technologies such as desktop software applications, including e-mail, teleconferencing and desktop publishing.

MIS helps in the..

Information extracted from a management information system might therefore be at a variety of levels for a range of users. For example:
1. Strategic planningThe strategic planning process uses both internal and external sources of information. In a dynamic and changing business environment information is geared towards helping an organization to use strategic planning to adapt.

2.

Management control- This is the process by which managers ensure that resources are obtained and used effectively and efficiently in the accomplishment of the organization's objectives. Control involves planning. For example, are sales ahead of budget, does cost data support costing estimates, are policies in line with predictions? Most of the information for management control is generated internally.

Cont.
3. Operational control- This ensures that tasks are carried out efficiently. At this level, tasks have been specified and methods determined. Information for operations involves providing those involved with the responsibility of executing tasks with the minimum of expenditure on resources. 4. Decision makingDecision making is the developing concepts leading to the selection of a course of action among variations. Every decision making process produce a final choice e.g. decision to raise a order for purchase raw material.

Data gathering. though data may be gathered from various sources, it is the process of customizing them for the needs of various users that transforms them into information

Definitions of MIS
Examples of formal data might include: Internal Management reports Management audits Meetings Forecasts External Information services Trade publications Industry consultants Forums

Examples of informal data might include: Internal Conversations Grapevine Observation External Networking Trade shows Personal contacts

MIS in various functional areas in any business org.

FINANCE INFORMATION SYSTEM deals with: Financial decision making

->Procurement or Raising of funds from various resources and ->Allocation to activities to maximise profits. Resources for Procurement of funds has basically two categories: long term sources like debentures, equity etc. and other is short-term sources like bank borrowings etc. Each source has its own merits and demerits like cost, risk etc. Allocation can be made in two ways, one in long-term assets and the other is in short-term assets. In other words, we can say that financial management deals with reducing the cost of capital and proper utilization of funds to maximising the profits. To achieve the above goal the financial manager has to perform various activities such as:

Cash Management :
which help the manager to identify future requirements

Investment Management : Investment management deals with kind and proportion of

different securities to be maintained with in business org.

Capital Budgeting :Computerized capital Budgeting System incorporates NPV

or IRR method to analyze the expected cash flow and risks to determine the optimum mix of capital for a business.

Financial Planning :The financial planning is concerned with the best overall
financing for the business. Financial analysts typically use electronic spreadsheets and other financial planning software to evaluate the present and projected financial performance of a business.

Investment Management : Investment management deals with kind and proportion of different securities to be maintained with in business org. A business org. can invest their excess cash in shortterm and low-risk securities or higher returns high risk securities. The portfolio of such securities can be managed with the help of portfolio management software.

Investment Management : Investment management deals with kind and proportion of different securities to be maintained with in business org. A business org. can invest their excess cash in shortterm and low-risk securities or higher returns high risk securities. The portfolio of such securities can be managed with the help of portfolio management software.

Capital Budgeting : Computerized capital Budgeting System incorporates NPV or IRR method to analyze the expected cash flow and risks to determine the optimum mix of capital for a business. Financial Planning : The financial planning is concerned with the best overall financing for the business. Financial analysts typically use electronic spreadsheets and other financial planning software to evaluate the present and projected financial performance of a business.

MARKETING INFORMATION SYSTEM is the process of planning and executing the pricing, Marketing management
promotion and distribution of goods and services to achieve organizational goals. A marketing information system is collection of data, tools and supporting hardware and software to achieve the above goals.

Marketing information system is also a collection of various subsystems such as : 1. Sales Management 2. Advertising and Promotion 3. Advertising and Promotion 4. Market Research Components of Marketing Information System: Data Resources : invoice, customer order etc. People Resources : Marketing manager, clerks, sales managers, owner, sales representatives etc. Software Resources: Hardware Resources: Network Resources

HUMAN RESOURCE INFORMATION SYSTEM

Traditionally, a business uses computer based information system to produce pay slips and payroll reports, maintain personnel records and analyze the use of personnel in business operations. But now the human resource information system, along with these operations, supports recruitment, selection, performance appraisals, training etc. of the human resources.

PRODUCTION/MANUFACTURING INFORMATION SYSTEM

Production management is the term used to refer to those activities which are necessary to manufacture goods and services. The production information system has following various sub-systems: Production Planning: - Making drawings etc. - Drawing up the schedule - Drawing up the bills of materials
Production Engineering: Preparation of drawings, specifications, and experimental activities in the product engineering. Production engineers now a days use computer-aided engineering to analyze and evaluate the model of product design. Production Scheduling : -Minimise the idle time Production Control: - Minimise wastage

RESEARCH & DEVELOPMENT INFORMATION SYSTEM

Whether to have a separate R&D department depends upon a no. of factors such as size of org., management attitude towards this activity . Sometimes org. conduct research with the help of some outside agency. So it is not imp. how an org. conduct research. Research & Development Information System, is the systematic design, collection, analysis and reporting of data and findings relevant to a specific business situation being faced by the business org.