ALL IN ONE TOPICS OF MIS BY 124-STUDY

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	It includes estimating the cost, schedule and resources for the iteration. It also involves understanding the system requirements for continuous communication between the system analyst and the customer
Risk Analysis	Identification of potential risk is done while risk mitigation strategy is planned and finalized
Engineering	It includes testing, coding and deploying software at the customer site
Evaluation	Evaluation of software by the customer. Also, includes identifying and monitoring risks such as schedule slippage and cost overrun

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
Additional functionality or changes can be done at a later stage	Risk of not meeting the schedule or budget
Cost estimation becomes easy as the prototype building is done in small fragments	It works best for large projects only also demands risk assessment expertise
Continuous or repeated development helps in risk management	For its smooth operation spiral model protocol needs to be followed strictly
Development is fast and features are added in a systematic way	Documentation is more as it has intermediate phases
There is always a space for customer feedback	It is not advisable for smaller project, it might cost them a lot

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

Clinical Trial: An online clinical trial is one type of research method used to survey customers.

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.