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THE TECHNICAL AND BUSINESS PERSPECTIVE There are several perspectives of MIS. No single approach
captures the reality of MIS in organizations. The success and failure of MIS can only be explained from
different perspectives. From a business perspective, an information system provides a solution to a
problem or challenge facing a firm and represents a combination of management, organization, and
technology elements. The management dimension of information systems involves issues such as
leadership, strategy, and management behavior. The technology dimension consists of computer
hardware, software, data management technology, and networking or telecommunications technology
such as Internet. The organization dimension of information systems involves issues such as the
organization's hierarchy, functional specialties, business processes, culture, and political interest groups.

In any business organization, small or big, a major portion of the time goes in data collection,
processing, documenting it to the people.

In order to get a better grip on the activity of information processing, it is necessary to have a formal
system which should take care of the following points: (i) Handling of huge volumes of data. (ii)
Confirmation of the validity of data and transaction. (ii) Complex processing of data and
multidimensional analysis. (iv) Quick search and retrieval. Introduction to MIS (v) Mass storage. (vi)
Communication of the information system to the user on time. (vii) Fulfilling the changing needs of the
[Link] management information system uses computers and communication technology to
deal with these points.

From a technical perspective, MIS can be defined as a Computer-Based Information System (CBIS) that
uses computer technology to perform some or all of its intended tasks.

The basic components of Computer based Information System (CBIS) are: Hardware,
Software-,Databases,Network, People, Procedures.

ORGANIZATION STRUCTURE An organizational structure is a system that outlines how certain activities
are directed in order to achieve the goals of an organization. These activities can include rules, roles,
and responsibilities. The organizational structure also determines how information flows between
levels within the company. For example, in a centralized structure, decisions flow from the top down,
while in a decentralized structure, decision-making power is distributed among various levels of the
organization. Businesses of all shapes and sizes use organizational structures heavily. They define a
specific hierarchy within an organization. A successful organizational structure defines each employee's
job and how it fits within the overall system.

Organizational structures are normally illustrated in some sort of chart or diagram like a pyramid,
where the most powerful members of the organization sit at the top, while those with the least
amount of power are at the bottom. This is a traditional system of organizational structure that is often
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linked with organizations. The primary concept of the pyramid organizational Strategic Management
Tactical Management Operational Management Non-management staff Fig. 1.5 (Organization Structure:
Management Pyramid) structure is that the lower levels of the organization follow the commands of top
level employees. In this case the organization is viewed as a management pyramid with four
Introduction to MIS 1.13 At the lowest level, non-management staff attends to routine daily business
transactions such as selling goods and issuing receipts for payment. Operational management is
responsible for monitoring the transactions that are occurring, and dealing with any problems that may
arise. Tactical management decides on budgets, set targets, identify trends and develop short term
plans for the business. At the top of the pyramid, strategic management is responsible for defining the
long term goals of the company, and how it intends to position itself within its particular industry.
Putting an organizational structure in place can be very beneficial to a company. The structure not only
defines a company's hierarchy but also allows the firm to layout the pay structure for its employees. By
putting the organizational structure in place, the firm can decide salary grades and ranges for each
position. The structure also makes operations more efficient and much more effective. By separating
employees and functions into different departments, the company can perform different operations at
once seamlessly.

ТYPES OF ORGANIZATIONAL STRUCTURE The types of organizational structure are discussed below: (1)
Functional Structure This is also referred to as abureaucratic organizational structure and breaks up а
company based on the specialization of its workforce. Most small-to-medium-sized businesses
implement a functional structure. Dividing the firm into departments consisting of marketing, sales, and
operations is the act of using a bureaucratic organizatiőnal structure. (2) Divisional or Multidivisional
Structure This type of structure is common among large companies with many business units. A
company that uses this method organizes its leadership team based on the products, projects, or
subsidiaries they operate. A good example of this structure is Johnson & Johnson. With thousands of
products and lines of business, the company structures itself so each business unit operates as its own
company with its own president. (3) Flatarchy Structure Flatarchy, a newer structure, is the third type
and is used among many startups. As the name suggests, it flattens the hierarchy and chain of command
and gives its employees a lot of autonomy. Companies that use this type of structure have a high speed
of implementation. 1.14 (4) Matrix Structure Introduction to MIsThe fourth and final organizational
structure is a matrix structure. It is also the mostconfusing and the least used. This structure matrixes
employee across different superiors,divisions, or departments. An employee working for a matrixed
company, for example, may have duties in both sales and customer service.

EVALUATION OF MIS THROUGH INFORMATION SYSTЕМ Evaluation of MIS is a process in which the
performance of an organizational MIS 1sdetermined. According to the performance results, the
organization evaluates andimplements the necessary modifications in MIS. Various terms related to the
evaluation ofMIS are: (1) Evaluation approaches (2) Evaluation classes (3) Product-based MIS evaluation
(4) Cost/benefit-based evaluation

DECISION MAKING Decision making is the process of identifying and selecting a course of action out
ofseveral alternatives (options) to solve a specific problem or to achieve some objectives in a given
situation. The person who is responsible for making decisions is called DecisionMaker. Therefore,
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decision means a settlement to bring a conclusive result. Decisions are important as they determine
both managerial and organizational actions. There are two types of decisions. They are: (i)
Programmable decisions (ii) Non-Programmable decisions (i) Programmable decisions: Programmable
decisions are decisions taken with thehelp of predefined rules and structure. (ii) Non-programmable
decisions: Non-programmable decisions are decisions takenaccording to the situation and knowledge
without using any rules and structure.

According to Peter Drucker, "Whatever a manager does, he does through decisionmaking". A manager
has to take a decision before acting or before preparing a plan for execution. Moreover, his ability is
very often judged by the quality of decisions he [Link], management is always a decision-making
process. It is a part of every managerialfunction. This is because action is not possible unless a firm
decision is taken about a business problem or situation.

This clearly suggests that decision-making is necessary in planning, organizing directing, controlling and
staffing.

СOMPONENTS OF DECISION MAKING Decision making in management has following three components:
(i) Alternatives: There are two or more alternatives. Decision making means to select the best
alternative. (ii) Choice: Decision making involves a choice. It means to choose the best solution for
solving the problem. (iii) Objectives: Decision making is objective-oriented. It is done to achieve an
objective or to solve a problem.

DECISION MAKING PROCESS Decision making process prescribes some rules and guidelines as to how a
decisionshould be taken. Decision making process involves a number of steps which need to betaken in
a logical manner. This process involves the following six steps: 1. Defining/Identifying the Problem 2.
Analyzing the Problem 3. Developing Alternative Solutions 4. Selecting the Best Solution 5. Converting
Decision into Action 6. Ensuring Feedback for Follow-up

The Fig. 1.6 suggests the steps in the decision making process: (1) Identifying the Problem (2) Analysing
the Problem (3) Developing Alternative Solutions Process of Decision Making (6) Ensuring Feedback for
Follow-up (5) Converting Decision into Action Fig. 1.6 (Decision Making Process) (4) Selecting the Best
Solution Introduction to MIS 1.21 (1) Identifying the Problem: Identification of the real problem before a
business enterprise is the first step in the process of decision-making. It is rightly said that a problem
well-defined is a problem half-solved. Information relevant to the problem should be gathered so that
critical analysis of the problem is possible. This is how the problem can be diagnosed. While diagnosing
the real problem the manager should consider causes and find out whether they are controllable or
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uncontrollable. (2) Analyzing the Problem: After defining the problem, the next step in the
decisionmaking process is to analyze the problem in depth. This is necessary to classify the problem in
order to know who must take the decision and who must be informed about the decision taken. Once
the problem has identified, obtain the relevant information or data about it. There is information flood
in the business world due to new developments in the field of information technology. All available
information should be utilized fully for analysis of the problem. This brings clarity to all aspects of the
problem. (3) (4) (5) Developing Alternative Solutions: After the problem has been defined, diagnosed on
the basis of relevant information, the manager has to determine available alternative courses of action
that could be used to solve the problem at hand. Only realistic alternatives should be considered. It is
equally important to take into account time and cost constraints that will restrict the number of
alternatives. If necessary, group participation techniques may be used while developing alternative
solutions as depending on one solution is undesirable. Selecting the Best Solution: After preparing
alternative solutions, the next step in the decision-making process is to select an alternative that seems
to be most rational for solving the problem. The alternative thus selected must be communicated to
those who are likely to be affected by it. Acceptance of the decision by group members is always
desirable and useful for its effectiveimplementation. Converting Decision into Action: After the selection
of the best decision, the nextstep is to convert the selected decision into an effective action. Without
such action,the decision will remain merely a declaration of good intentions. Here, themanager has to
convert 'his decision' into 'their decision' through his [Link] this, the subordinates should be
taken in confidence and they should beconvinced about the correctness of the decision. Thereafter, the
manager has to take follow-up steps for the execution of decision taken. 1.22 Introduction to MIS 1.8 (6)
Ensuring Feedback for Follow-up: Feedback is the last step in the decision-makingprocess. Here, the
manager has to make built-in arrangements to ensure feedback for continuously testing actual
developments against the expectations. Feedback is possible in the form of organized information,
reports and personal observations. Feedback is necessary to decide whether the decision already taken
should be continued or be modified.

SIMON'S MODEL OF DECISION MAKING Decision making in organizations is regarded as a rational

process which the decision maker uses to arrive at a decision. Herbert A. Simon has given a model to
describe the decision-making process. The model comprises of three major phases,

namely. (1) Intelligence (2) Design (3) Choice Intelligence Design Choice
Fig. 1.7 (Simon's Model of Decision Making) (i) identifies Intelligence Phase: In this phase, the decision
maker scans the environment and continuous the problem or opportunity. The scanning of environment
may be or non-continuous. Intelligence phase of decision-making process involves: (a) Problem
Searching (b) Problem Formulation (a) Problem Searching: For searching the problem, the reality or
actual is compared to some standards. Differences are measured and the differences are evaluated to
determine (b) Problem whether there is any problem or not. Formulation: When the problem is
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identified, there is always a risk of solving the wrong problem. In problem formulation, establishing
relations with some problem solved earlier proves quite useful. Introduction to MIS 1.23 (ii) Design
Phase: In this phase, the decision maker identifies alternative courses of action to solve the problem.
Inventing or developing of various alternatives is time consuming and crucial activity, as the decision
maker has to explore all the possible alternatives. (iii) Choice Phase: At this stage, one of the alternatives
developed in design phase is selected and is called a decision. For selecting an alternative, detailed
analysis of each and every alternative is made. Having made the decision, it is implemented. The
decision maker in choice phase may reject all the alternatives and return to the design phase for
developing more alternatives.

SYSTEM APPROACH TO PROBLEM SOLVING

In general, a system can be defined as an organized collection of interdependent functioning units or

components that are linked together in order to achieve a specific objective. A system may be seen as
a set of subsystems. Each subsystem has its well-defined specific task. All these subsystems work in
coordination to achieve overall objective of the system. For example, a human body is a biological
system that consists of a set of components including brain, nervous system, spinal cords, sensitive cells
under our skin that work together to make us sense, feel and then generate response. In terms of
organization, all the interdependent components interact with each-other to make the organization a
functional unit. The system approach to a business organization implies a holistic approach to the study
of inter-relationships of sub-systems of an organization in view of the objectives set by the organization.
The system approach to problem solving involves the following interrelated activities: (1) Defining
problems and opportunities (2) Developing and evaluating alternate solutions (3) Evaluating alternate
solutions and choose the best one (4) Designing and Implementing solution (5) Post Implementation

STRUCTURE OF MANAGEMENT INFORMATION SYSTEM / COMPONENTS OF MIS:

Hardware,software,personnel,databases and procedures.

MIS ORGANIZATION WITHIN THE COMPANY

MIS for a Business Organization:

Support the Business Process: Treats inputs as a request from the customer andoutputs as services to
customer. Supports current operations and use the system toinfluence further way of working.

Support Operation of a Business Organization: MIS supports operations of a business organization by

giving timely information, maintenance and enhancementwhich provides flexibility in the operation of
an organization. To Support Decision Making: MIS supports the decision making by employee in their
daily operations. MIS also supports managers in decision making to meet the Introductlon to MIS 1.27
goals and objectives of the organization. Different mathematical models and IT tools are used for the
purpose evolving strategies to meet competitive needs. Strategies for an Organization: Today each
business is running in a competitive market. MIS supports the organization to evolve appropriate
strategies for the business to assent in a competitive environment.