Different Approaches to Development of MIS
There are
two basic approaches for development of MIS :
a) System
development life cycle : The system development life cycle have
following steps of development :
i) Systems
Planning ii) Systems Analysis iii) Systems Design iv) Systems Implementation
v) Systems
Operation and Support (System Maintenance)
b) Prototyping
: Prototyping is the process of creating an incomplete model of the
future full-featured system, which can be used to let the users have a first
idea of the completed program or allow the clients to evaluate the program.
Advantages :
i) The
designer and implementer can obtain feedback from the users early in the
project development.
ii) The
client and the contractor can compare that the developing system matches with
the system specification, according to which the system is built.
iii) It also
gives the engineer some idea about the accuracy of initial project estimates
and whether the deadlines can be successfully met.
The process
of prototyping involves the following steps :
i) Identify
basic requirements.
ii) Develop
initial prototype.
iii) Review
: The customers, including end-users, examine the prototype and
provide feedback for additions or changes.
iv) Revise
and Enhance the Prototype : Using the feedback both the specifications
and the prototype can be improved. If changes are introduced then a repetition
of steps 3 and 4 may be needed.
Types of
prototyping : System prototyping are of various
kinds. However, all the methods are in some way based on two major types of
prototyping :
Throwaway
Prototyping : Throwaway or Rapid Prototyping refers
to the creation of a model that will eventually be discarded rather than
becoming part of the finally delivered system. After preliminary requirements
gathering is accomplished, a simple working model of the system is constructed
to visually show the users what their requirements may look like when they are
implemented into a finished system. The most obvious reason for using Throwaway
Prototyping is that it can be done quickly.
Evolutionary
Prototyping : Evolutionary Prototyping (also known as Breadboard
Prototyping) is quite different from Throwaway Prototyping. The main goal
when using
Evolutionary
Prototyping is to build a very good prototype in a structured manner so that we
can refine it or make further changes to it. The reason for this is that the
Evolutionary prototype, when built, forms the heart of the new system, and the
improvements and further requirements will be built on to it. It is not
discarded or removed like the Throwaway Prototype. When developing a system
using Evolutionary Prototyping, the system is continually refined and rebuilt.
Incremental
Prototyping : The final product is built as separate
prototypes. At the end the separate prototypes are merged in an overall design.
Advantages of Prototyping :
i) Reduced
Time and Costs : Prototyping can improve the quality of requirements
and specifications provided to developers. Early determination of what the user
really wants can result in faster and less expensive software.
ii) Improved
and Increased User Involvement : Prototyping requires user involvement
and allows them to see and interact with a prototype; allowing them to provide
better and more complete feedback and specifications. Since users know the
problem better than anyone, the final product is more likely to satisfy the
users desire for look, feel and performance.
Disadvantages of Prototyping :
i) Insufficient
Analysis : Since a model has to be created, developers will not
properly analyse the complete project. This may lead to a poor prototype and a
final project that will not satisfy the users.
ii) User
Confusion of Prototype and Finished System : Users can begin to think
that a prototype, intended to be thrown away, is actually a final system that
merely needs to be finished or polished. Users can also become attached to
features that were included in a prototype for consideration and then removed
from the specification for a final system.
iii) Excessive
Development Time of the Prototype : A key property to prototyping is
the fact that it is supposed to be done quickly. If the developers forget about
this fact, they will develop a prototype that is too complex.
iv) Expense
of Implementing Prototyping : The start up costs for building a
development team focused on prototyping may be high. Many companies have to
train the team for this purpose which needs extra expenses.
What is WaterFall Model?
The Waterfall Model was first Process Model to be introduced.
It is very simple to understand and use. In a Waterfall model, each phase must be completed
before the next phase can begin and there is no overlapping in the
phases. Waterfall model
is the earliest SDLC approach
that was used for software development.
In “The Waterfall”
approach, the whole process of software
development is
divided into separate phases. The outcome of one phase acts as the input for
the next phase sequentially. This means that any phase in the development
process begins only if the previous phase is complete. The waterfall model is a
sequential design process in which progress is seen as flowing steadily
downwards (like a waterfall) through the phases of Conception, Initiation,
Analysis, Design, Construction, Testing, Production/Implementation and
Maintenance.
As the Waterfall Model illustrates the software development
process in a linear sequential flow; hence it is also referred to as a Linear-Sequential Life Cycle
Model.
Sequential Phases in Waterfall Model
·
Requirements: The first phase involves understanding what need to be
design and what is its function, purpose etc. Here, the specifications of the
input and output or the final product are studied and marked.
·
System Design: The requirement specifications from first phase are studied in this
phase and system design is prepared. System Design helps in specifying hardware
and system requirements and also helps in defining overall system architecture.
The software code to be written in the next stage is created now.
·
Implementation: With inputs from system design, the system is first developed in
small programs called units, which are integrated in the next phase. Each unit
is developed and tested for its functionality which is referred to as Unit
Testing.
·
Integration and Testing: All the units developed in the implementation phase are integrated
into a system after testing of each unit. The software designed, needs to
go through constant software testing to find out if there are any flaw or
errors. Testing is done so that the client does not face any problem during the
installation of the software.
·
Deployment of System: Once the functional and non-functio
nal testing is done, the product is deployed in the customer
environment or released into the market.
·
Maintenance: This step occurs after installation,
and involves making modifications to the system or an individual component to
alter attributes or improve performance.These modifications arise either due to
change requests initiated by the customer, or defects uncovered during live use
of the system. Client is provided with regular maintenance and support for the
developed software.
All these phases are cascaded
to each other in which progress is seen as flowing steadily downwards (like a
waterfall) through the phases. The next phase is started only after the defined
set of goals are achieved for previous phase and it is signed off, so the name
“Waterfall Model“.
Advantages of Waterfall Model
·
The advantage of waterfall development is that it allows for
departmentalization and control. A schedule can be set with deadlines for each
stage of development and a product can proceed through the development process
model phases one by one.
·
The waterfall model progresses through easily understandable and
explainable phases and thus it is easy to use.
·
It is easy to manage due to the rigidity of the model – each phase
has specific deliverables and a review process.
·
In this model, phases are processed and completed one at a time and
they do not overlap. Waterfall model works well for smaller projects where
requirements are very well understood.
Disadvantages of Waterfall Model
·
It is difficult to estimate time and cost for each phase of the
development process.
·
Once an application is in the testing stage, it is very difficult
to go back and change something that was not well-thought out in the concept
stage.
·
Not a good model for complex and object-oriented projects.
·
Not suitable for the projects where requirements are at a moderate
to high risk of changing.
What is Prototyping
Model ?
The Prototyping Model is a
systems development method (SDM) in which a prototype (an
early approximation of a final system or product) is built, tested, and then
reworked as necessary until an acceptable prototype is finally achieved from
which the complete system or product can now be developed. This model works
best in scenarios where not all of the project requirements are known in detail
ahead of time. It is an iterative, trial-and-error process that takes place
between the developers and the users.
There are several steps in the
Prototyping Model:
1.
The new system requirements are defined in as much detail as
possible. This usually involves interviewing a number of users representing all
the departments or aspects of the existing system.
2.
A preliminary design is created for the new system.
3.
A first prototype of the new system is constructed from the
preliminary design. This is usually a scaled-down system, and represents an
approximation of the characteristics of the final product.
4.
The users thoroughly evaluate the first prototype, noting its
strengths and weaknesses, what needs to be added, and what should to be
removed. The developer collects and analyzes the remarks from the users.
5.
The first prototype is modified, based on the comments supplied
by the users, and a second prototype of the new system is constructed.
6.
The second prototype is evaluated in the same manner as was the
first prototype.
7.
The preceding steps are iterated as many times as necessary,
until the users are satisfied that the prototype represents the final product
desired.
8.
The final system is constructed, based on the final prototype.
9.
The final system is thoroughly evaluated and tested. Routine
maintenance is carried out on a continuing basis to prevent large-scale
failures and to minimize downtime.
What is Incremental Model or iterative enhancement model ?
The
incremental model (also known as iterative enhancement model) comprises
the features of waterfall model in an iterative manner. The waterfall model
performs each phase for developing complete software whereas the incremental
model has phases similar to the linear sequential model arid has an iterative
nature of prototyping. During the implementation phase, the project is divided
into small subsets known as increments that are implemented
individually. This model comprises several phases where each phase produces an
increment. These increments are identified in the beginning of the development
process and the entire process from requirements gathering to delivery of the
product is carried out for each increment.
The basic
idea of this model is to start the process with requirements and iteratively
enhance the requirements until the final software is implemented. In addition,
as in prototyping, the increment provides feedback from the user specifying the
requirements of the software. This approach is useful as it simplifies the
software development process as implementation of smaller increments is easier
than implementing the entire system.
Each stage
of incremental model adds some functionality to the product and passes it on to
the next stage. The first increment is generally known as a core
product and is used by the user for a detailed evaluation. This
process results in creation of a plan for the next increment. This plan
determines the modifications (features or functions) of the product in order to
accomplish user requirements. The iteration process, which includes the
delivery of the increments to the user, continues until the software is
completely developed.
The
increments result in implementations, which are assessed in order to measure
the progress of the product.
Various
advantages and disadvantages associated with the incremental model are listed
in Table.
Table Advantages and Disadvantages of Incremental Model
Advantages
|
Disadvantages
|
1.
Avoids the problems resulting in risk
driven approach in the software.
2.
Understanding increases through
successive refinements.
3.
Performs cost-benefit analysis before
enhancing software with capabilities
4.
Incrementally grows in effective
solution after every iteration
5.
Does not involve high complexity rate
6.
Early feedback is generated because
implementation occurs rapidly for a small subset of the software.
|
1.
Requires planning at the management
and technical level
2.
Becomes invalid when there is time
constraint on the project schedule or when the users cannot accept the phased
deliverables.
|
-===============================
What is Spiral Model?
Spiral
Model is a combination of a waterfall model and iterative model. Each phase in
spiral model begins with a design goal and ends with the client reviewing the
progress. The spiral model was first mentioned by Barry Boehm in his 1986
paper.
The
development team in Spiral-SDLC model starts with a small set of requirement
and goes through each development phase for those set of requirements. The
software engineering team adds functionality for the additional requirement in
every-increasing spirals until the application is ready for the production
phase.
Spiral Model Phases
Spiral
Model Phases
|
Activities
performed during phase
|
Planning
|
|
Risk Analysis
|
|
Engineering
|
|
Evaluation
|
|
When
to use Spiral Methodology?
- When
project is large
- When
releases are required to be frequent
- When
creation of a prototype is applicable
- When
risk and costs evaluation is important
- For
medium to high-risk projects
- When
requirements are unclear and complex
- When
changes may require at any time
- When
long term project commitment is not feasible due to changes in economic
priorities
Advantages and
Disadvantages of Spiral Model
Advantages
|
Disadvantages
|
|
|
|
|
|
|
|
|
|
|
Marketing Information
Systems
A
marketing information system (MIS) is a management information system designed
to support marketing decision making. It brings together many different kinds
of data, people, equipment and procedures to help an organization make better
decisions. American academic Philip Kotler has defined it more broadly as
“people, equipment, and procedures to gather, sort, analyze, evaluate, and
distribute needed, timely, and accurate information to marketing decision
makers. ” Not to be confused for a management information system, marketing
information systems are designed specifically for managing the marketing
aspects of the business
Key Points
·
With the increasing use of the Internet, online questionnaires
have become a popular way to collect information.
·
Online Research Methods include: ethnography, focus groups,
interviews, web-based experiments and clinical trials.
·
The advantages of digital surveys include: questions can be
displayed in different ways, data can be received immediately, collection is
more cost-effective than traditional methods, and adapting surveys is quick and
affordable.
·
The disadvantages of digital surveys include: response rates are
limited to people who can access the web, many people dislike completing
questionnaires online, and people who respond to online questionnaire
invitations tend to be younger.
Key Terms
·
ethnography: The branch of
anthropology that scientifically describes specific human cultures and
societies.
·
Online
Research Method: A way in which researchers can collect data via the Internet.
This is also referred to as Internet research.
·
focus
group:
A group of people, sampled from a larger population, interviewed in open
session for market research or political analysis.
Other Online Research
Methods for Surveying Consumers
·
Online Ethnography , Online Focus Group , Online Interview Web-based Experiments
·
Online Clinical Trials
Advantages of
Digital Surveys
·
The administrator has greater flexibility in displaying
questions. Questions can be displayed with check boxes, pull down menus, pop up
menus, help screens, or submenus.
·
An online forum allows responses to be received from more
subjects and from anywhere in the world.
·
This method is also cheaper to use, because there are fewer
costs incurred from buying paper, printing materials or paying postage.
·
Since data is collected into a central database, the time for
analysis is substantially reduced.
·
It is easier to correct errors on an online questionnaire, since
the administrator does not have to reprint and redistribute all the
questionnaires.
Disadvantages
of Digital Surveys
·
Not everyone has access to the Internet, so the response rate is
limited.
·
Many people are not receptive to completing questionnaires
online.
·
Studies indicate that the demographic that responds to online
questionnaire invitations are generally younger people
Many organizations are structured based on functional areas. This is often reflected in an organizational chart. Typically, functional areas include finances, human resources, marketing, etc. Many of these functional areas have their own Management Information System, or MIS.
Financial
MIS
A financial MIS provides financial
information for managers to make daily decisions on operations within the
organization. Most systems provide these functions:
- Integrate financial information from multiple
sources
- Provide easy access to financial information
in summarized form
- Enable financial analysis using easy-to-use
tools
- Compare historic and current financial
activity
A financial MIS often has a number of subsystems,
depending on the type of organization. These include systems to analyze
revenues, costs and profits, auditing systems for both internal and external
purposes and systems to manage funds. A financial MIS can also be used to
prepare reports for third parties, such as external auditors or shareholders.
Marketing
MIS
A marketing MIS supports
activities throughout the many activities of marketing departments. Some of the
typical subsystems of a marketing MIS are marketing research, product
development and delivery, promotion and advertising, product pricing and sales
analysis.
One of the most common uses of a marketing MIS is
to produce sales reports. These are typically produced on a regular schedule,
such as by week, month and quarter. Reports can be organized by sales
representative, product, customer or geographic area. Such reports allow
managers to see which aspects of sales are doing well and which ones need
attention.
Perhaps one sales representative has suddenly
experienced a drop in sales by losing one major customer and needs some support
to develop some new leads. If there are only a handful of sales reps sharing
one office, a manager might be able to pick up on this just by talking to
everyone. However, what if a manager has to oversee more than 100 sales reps in
12 different offices around the nation? A specialized information system that
provides regular updates in a meaningful format
===MIS AND DECISION MAKING CONCEPTS
HERBERT SIMON MODEL OF DECISION MAKING
DECISION-MAKING CONCEPT:
A decision is choice out of several alternatives (options)
made by the decision maker to achieve some objective s in a given situation.
Business decisions are those, which are made in the process of conducting
business to achieve its objective in a given environment. Managerial
decision-making is a control point for every managerial activity may be
planning, organizing, staffing, directing, controlling and communicating.
Decision-making is the art of reasoned and judicious choice out of many
alternatives. Once decision is taken, it implies commitment of resources.
The business managers have to take variety of decision. Some
are routine and others are long-term implementation decision. Thus managerial
decisions are grouped as:
(a) Strategic decision
(b) Tactical decision
(c) Operation decision
1. Strategic Decision: these are known as major decision
influence whole or major part of the organization. Such decisions contribute
directly to the achievement of common goals of the organization; have long
range effect upon the organization.
Generally, strategic decision is unstructured and thus, a
manager has to apply his business judgment, evaluation and intuition into the
definition of the problem. These decisions are based on partial knowledge of
the environmental factors which are uncertain and dynamic, therefore such
decision are taken at the higher level of management.
2. Tactical Decision: tactical decision relate to the
implementation of strategic decisions, directed towards developing divisional
plans, structuring workflows, establishing distribution channels, acquisition
of resources such as men, materials and money. These decisions are taken at the
middle level of management.
3. Operational Decision: operational decisions relate to
day-to-day operations of the enterprise having a short-term horizon and are
always repeated. These decisions are based on facts regarding the events and do
not require much of business judgments. Operational decisions are taken at
lower level of management.
The business decision-making is sequential in nature. In
business, the decisions are not isolated events. Each of them has a relation to
some other decision or situation. The decision may appear as a ‘snap’ decision
but it is made only after long chain of developments and a series of related
earlier decisions.
The decision-making process is a complex process in the
higher hierarchy of management. The complexity is the result of many factors
such as inter-relationship among the experts of decision-makers, a job
responsibility, and a question of feasibility, the codes of morals and ethics
and a probable impact on business.
The personal values of the decision-maker play a major role
in decision-making. A decision otherwise being very sound on the business principle
and economically rationality may be rejected on the basis of the personal
values, which are defeated if such a decision is implemented. The culture, the
discipline and the individual commitment to goals will decide the process and
success of the decision.
The decision-making process requires creativity, imagination
and a deep understanding of human behavior. The process covers over a number of
tangible and intangible factors affecting the decision process. It also
requires a foresight to predict the post-decision implication and a willingness
to face those implications. All decisions solve a ‘problem’ but over a period
of time they give rise to a number of other ‘problems’.
The need of information system in organization is to support
the decision-making process. The managers must be aware of problems before
decision can be made. A problem exists when the real situation is different
than the expected one. After the problem has been identified, the cause of
existence of the problem must be identified and then the solution to the
problem has to be found. The decision-making process can be divided into three
main phases:
(a) Intelligence: searching the environment for condition calling
for decisions. The phase consists of determining that a problem exists.
(b) Design: during this phase a set of alternative solution is
generated and tested for feasibility.
(c) Choice: in this phase, the decision-maker select one of the
solution identified in the design phase.
Thus, the decision process follows the sequence from
intelligence to design and from design to choice. It is possible to get back
from one phase to another and whole process may be repeated. It is very
important to distinguish between programmed and non-programmed decision.
If a decision can be based on a rule, method or even
guidelines, it is said to be programmed decision. The effectiveness of rule can
be analyzed and then rule can be reviewed and modified from time to time for an
improvement. The programmed decision-making can be delegated to the lower level
in management.
A decision which cannot be made by using a rule or a model is
the non-programmed decision. Such decisions are infrequent but the stakes are
usually larger. Therefore, they cannot be delegated to the lower level. The MIS
in the non-programmed decision situation can help to some extent, in
identifying the problem, giving the relevant information to handle the specific
decision-making situation. The MIS, in other words, can develop support system
in the non-programmed decision-making situation. Advertising budgets, new
product decisions and similar problems illustrate the non-programmed type of
decision that cannot be automated.
The major reason for distinguishing these two types of
decisions is to arrive at some classification of decision-making methods in
order to improve decision-making.
MIS AND DECISION-MAKING
It is necessary to understand the concept of decision-making
as they are relevant to the design of the MIS. The Simon model provides a
conceptual design of the MIS and decision-making wherein the designer has to
design the system in such a way that the problem is identified in precise
terms. That means the data gathered for data analysis should be such that it
provides diagnostics and also provide a path to bring the problem to surface.
In the design phase of the model, the designer is to ensure
that the system provides models for decision-making. These models should
provide for the generation of decision alternatives, test them and pave way for
the selection of one of them. In a choice phase, the designer must help to
select the criteria to select one alternative amongst the many.
The concept of programmed decision-making is the finest tool
available to the MIS designer, whereby he can transfer decision-making from a
decision-maker to the MIS and still retain the responsibility and accountability
with the decision maker or the manager. In case of non-programmed decisions,
the MIS should provide the decision support systems provide a
generalized model of decision-making.
The concept of decision-making system, such as the closed and
the open system, such as the closed and the open systems, helps the designer in
providing design feasibility. The closed systems are deterministic and rule
based, therefore, the design needs to have limited flexibility, while in an
open system, the design should be flexible to cope up with the changes required
from time to time.
The methods of decision-making can be used directly in the
MIS provided the method to be applied has been decided. A number of
decision-making problem calls for optimization, and operational models are
available which can be made a part of the system, the optimization models are
static and dynamic, and both can be used in the MIS. Some of the problems call
for a competitive analysis, such as payoff analysis. In these problems, the MIS
can provide the analysis based on the gains, the regrets and the utility.
The concept of the organizational and behavioral aspects of
decision-making provides an insight to the designer to handle the
organizational culture and the constraints in the MIS. The concepts of the
rationality of a business decision, the risk awareness of the managers and the
tendency to avoid an uncertainty, makes the designer conscious about the human
limitations and prompts him to provide a support in the MIS to handle these
limitations. The reliance on organizational learning makes the designer aware
of the MIS and makes him provide the channels in the MIS to make the learning
process more efficient.
The relevance of the decision-making
concepts is significant in the MIS design. The significance arises out of the
complexity of decision-making, the human factors is the decision-making, the
organizational and behavior aspects, and the uncertain environments. The MIS
design addressing these significant factors turns out to be the best design.
Modeles in
Decision-Making BY 124STUDY.BLOGSPOT.IN
There are two basic models in
decision-making −
·
Rational models
·
Normative model
The rational models are based on
cognitive judgments and help in selecting the most logical and sensible
alternative. Examples of such models include - decision matrix analysis, Pugh
matrix, SWOT analysis, Pareto analysis and decision trees, selection matrix,
etc.
A rational decision making model
takes the following steps −
·
Identifying the problem,
·
Identifying the important criteria for
the process and the result,
·
Considering all possible solutions,
·
Calculating the consequences of all
solutions and comparing the probability of satisfying the criteria,
·
Selecting the best option.
·
--------------------------------------------
The normative model of
decision-making considers constraints that may arise in making decisions, such
as time, complexity, uncertainty, and inadequacy of resources.
According to this model,
decision-making is characterized by −
·
Limited information processing - A
person can manage only a limited amount of information.
·
Judgmental heuristics - A person may
use shortcuts to simplify the decision making process.
·
Satisfying - A person may choose a
solution that is just "good enough".
Anthony's Framework for Understanding MIS
In order
to understand the importance of MIS one must understand and appreciate the role
that MIS plays in an organization. An organization may be conceived in a lot of
ways. One can visualize an organization as a balance sheet or a function of
financial statements, i.e., as a financial entity or as an organization chart
delineating the decision-making hierarchy levels and formal communication
channels. While both views are correct, the latter view is more appropriate for
understanding an organization's MIS.
Anthony in his seminal work elaborated (R.A. Anthony 1965) on this view of an
organization as its hierarchy of decision-making. He focused on the managerial
aspects of an organization and classified the management process into three
distinct levels.
Strategic Planning
This
requires focusing on the objectives and goals of the organization, on changes
in the objectives, on the resource requirements to fulfill the objectives and
on the guiding principles and policies that will govern the acquisition, use
and disposal of resources to attain the objectives. In short, this role is the
most important role in the management hierarchy and the decisions taken by
managers in this role have a far-reaching impact on the organization. Managers
in this role set the direction in which the organization will travel. In terms
of hierarchy, this lies at the top.
Managerial Control
This
requires that resources are acquired and used effectively and efficiently to
attain the objectives of the organization. This is a middle management role.
Managers in this role take guidance from the strategic planning hierarchy and
control the activities of the organization such that the goals set by the
higher level are attained in an efficient and effective manner. The impact of
the decisions of the managers in this role is medium term and degree.
Operational Control
This
requires that directives as set by the immediate higher hierarchy is followed
and that specific task/s are carried out effectively and efficiently. The
decisions at this level have very little impact on the organization. The
organization behaves in a routine nature where the parameters of the
decision-making process are well laid and certain.
Anthony's
idea of an organization's hierarchy from the perspective of managerial activities.
As is clear, it is a three-level pyramid with very distinct levels. Each level
has its own set of tasks and decisions to take which have a varying impact on
the organization as a whole.
Management Levels in Organizations
Management Function
|
Strategic Planning
|
Management Control
|
Operational Control
|
Planning
|
Long-range,
high impact
|
Medium
range, medium
impact
|
Short
range, low impact
|
Organizing
|
General
framework
|
Departmental
level
|
Small
unit level
|
Staffing
|
Key
senior people
|
Medium
level, tactical level
|
Operational
level
|
Directing
|
General
and long range
directives
|
Tactics
|
Routine
activities
|
Controlling
|
Aggregate
level
|
Periodic
control and
controlling
exceptions
|
Regular
and continuous
supervision
|
For
example, if we want to classify the decisions of a manufacturing firm, the
strategic planning will encompass the annual production planning, annual
budgeting, setting up of new plants and/or installation
of new machinery to upgrade the production process and other such activities.
Management control activities would include monthly production planning,
maintenance planning and scheduling. Operational control on the other will deal
with routine daily tasks of managing and supervising shifts to exercise control
over the process so that the monthly plans and schedules as made by the
management control level managers are met.
--------------------------------------------------
MANAGEMENT STRUCTURE LEVELS
In management structure we have three levels.
·
Top Level
·
Middle Level and
·
Line Managers(Operating Management)
A graphical representation of management
structure is known as organisation chart.
The management structure is a pyramid as shown
in figure
Top Level : Top
Management performs the strategic planning processes. The basic function in
strategic planning are to establishes the polices, plans, and objectives of the
company, as well as a general budget framework under which the various
departments will operate. These factors are passes down to middle level or
management.
Middle Level : Middle
Management manages the management control processes (tactical planning
processes). The middle level translate the factors passed by top management
into specific revenue, cost, and profit goals using tactical planning. These
are reviewed, analysed and modified in accordance with the overall planes and
policies untill agreement is reached. Then middle management, issues the
specific schedules and measurement scales to operating level.
Line Managers : Line
managers manages the operational planning process. This level has the job of
producing the goods and services required to meet the revenue and profit goals,
which in turn will enable the company to reach its overall plans and
objectives.
Hence, we can say in simple words the middle
level managers reports to the top level manager who is the overall incharge of
the organisation. The middle level managers have many assistants who are
responsible for specific day to day operations. They are known as line
managers.
TYPES OF INFORMATION
SYSTEM
With the understanding of three kinds of
process that take place in a business, we can view the nature of information
systems that support these processes. We have three types of information
system, which satisfy the information needs of each level.
·
Transaction Processing System(TPS)
·
Management Information System(MIS) and
·
Decision Support System(DSS)
Transaction Processing System(TPS) : The information system that support the operational control
processes are called transaction processing systems. TPS supports day to
day operations. All of these systems help a company to conduct its operations
and keep track of its activities. These systems are often termed the bread and butter applications means
those systems that process incoming orders for a company’s product and develop
the information required to deliver the items and then bill the customers for
the cost of their orders. Some other TPS are ticket selling system and accounts
payable system etc.
Management Information System(MIS) : The information system that support the middle level process
are called Management Information system i.e. The system required to obtain
tactical information is known as MIS. These systems mainly center on providing
managers with information to control operations and make decisions to optimise
the delivery of products to customers. For example, in ticket selling system, a
TPS is used to take orders and print tickets. MIS is used to measure and report
the performance of each of the agents who sell tickets. Such a MIS keep track
of the number and amount of each agents sales and it regularly produces reports
about agents effectiveness.
Decision Support System(DSS) : The information system that support the top level process are
called Decision Support system i.e. The system required to obtain strategic
information is known as DSS. The strategic planning information systems are
more elusive than the other systems. With the help of this system top
level manages the policies, plans, objectives and budgets etc. Unlike MIS,
which are regular and recurring, the need for DSS can be irregular.
CHARACTERISTICS OF MIS
·
Avoid GIGO (Garbage In Garbage Out) : The
correct input of a system always gives accurate information. So, GIGO must be
avoided.
·
Information produced should be trust worthy.
The processing should not hide vital information which may point out the
efficiency of some individuals.
·
The information should be complete it should
include all data, not partial data.
·
The information should be timely. Delayed
information may sometimes be of no use. So, whenever it should be required it
should be available.
·
The information should be presented in such a
way that manager may immediately perceives its significance. The graphical
presentation of information is a very effective way.
·
Information should be designed according to the
needs of the user and be relevant to him. Because irrelevant information always
waste a lot of managers time.
·
·
ROLE OF MANAGEMENT INFORMATION
SYSTEM
·
·
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. In the body the heart plays the role of supplying pure blood to
all the elements of the body including the brain. The heart work faster and
supplies more blood when needed. It regulates and controls the incoming impure
blood, processed it and sends it to the destination in the quantity needed. It
fulfills the needs of blood supply to human body in normal course and also in
crisis.
·
The MIS plays exactly the same role in the
organization. The system ensures that an appropriate data is collected from the
various sources, processed and send further to all the needy destinations. The
system is expected to fulfill the information needs of an individual, a group
of individuals, the management functionaries: the managers and top management.
·
Here are 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.
·
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.
·
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.
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