BUAD and Management Chapter 1.
Introduction to MIS
Chapter One
Introduction to Management Information System
Topics
1.1 Definition, Importance and Objectives of MIS
1.2 Subsystems of MIS
1.3 Contemporary Approaches to MIS
1.4 The Evolution and Characteristics of the Information Age
1.5 What Is Information Technology?
1.6 The Career Side of Information Technology
1.1. Management Information System (MIS): Concept
The concept of the MIS has evolved a period of time comprising many different facets of
the organizational functions. MIS is a necessity of all the organizations.
The initial concept of MIS was to process data from the organization and presents it in the
form of report at regular intervals. The system is was largely capable of handling the
data from collection to processing.
The concept of MIS gives high regard to the individual and his ability to use the
information. An MIS gives information through data analysis. While analyzing the data, it
relies on many academic disciplines. These include the theories, principles, and concepts
from the Management Science, Management Accounting, Operation Research,
Organizational Behavior, Engineering, Computer Science, Psychology and Human
Behavior, making the MIS more effective and useful. These academic disciplines are used
in designing the MIS, evolving the decision support tools for modeling and decision-
making.
MIS: Definition
The Management Information System (MIS) is a concept of the last decade or two. It has
been understood and described in a number of ways. It is also popularly known as the
Information System, the Information and Decision System, the Computer-based Information
System.
The MIS has more than one definition, some of which are given below.
A system which provides information support for decision making in the
organization.
An integrated system of man and machine for providing the information to support
the operation, the management and the decision making function in the
organization.
A system based on the database of the organization evolved for the purpose of
providing information to the people in the organization.
A computer-based information system.
Importance of Management Information System (MIS)
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
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BUAD and Management Chapter 1. Introduction to MIS
supplying pure blood to all the elements of the body including the brain. The heart works
faster and supplies more blood when needed. It regulates and controls the incoming
impure blood, processes it and sends it to the destination in the quantity needed. It fulfills
the need 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 sent 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 the
top management.
Since the MIS plays a very important role in the organization, it creates an impact on the
organization’s functions, performance and productivity.
The impact of MIS on the functions is in its management. With a good MIS support, the
management of marketing, finance, production and personnel becomes more efficient. The
tracking and monitoring of the functional targets become easy. The functional managers
are informed about the progress, achievements and shortfalls in the activity and the
targets. The manager is kept alert by providing certain information indicating the
probable trends in the various aspects of business. This helps in forecasting and long-term
perspective planning. The manager’s attention is brought to a situation which is
exceptional in nature, inducing him to take an action or a decision in the matter. A
disciplined information reporting system creates a structured database and a knowledge
base for all the people in the organization. The information is available in such a form
that it can be used straight away or by blending and analysis, saving the manager’s
valuable time.
The MIS creates another impact in the organization which relates to the understanding of
the business itself. The MIS begins with the definition of a data entity and its attributes. It
uses a dictionary of data, entity and attributes, respectively, designed for information
generating in the organization. Since all the information system use the dictionary, there is
common understanding of terms and terminology in the organization bringing clarity in the
communication and a similar understanding of an event in the organization.
Since the goals and objectives of the MIS are the products of business goals and
objectives, it helps indirectly to pull the entire organization in one direction towards the
corporate goals and objectives by providing the relevant information to the people in the
organization.
1.2. Subsystems of MIS
MIS comprises four subsystems; these subsystems are existed in most organization under its
proper organizational structure. Each of the subsystems of MIS has their own specialized
functions those integrated as a whole function of MIS. These four subsystems of MIS are:
i. Sales and Marketing unit
ii. Manufacturing and Production unit
iii. Accounting and Finance unit
iv. Human Resource unit
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1.3. Contemporary Approaches to MIS
Multiple perspectives on information systems show that the study of information systems is
a multidisciplinary field. No single theory or perspective dominates. The following figure
illustrates the major disciplines that contribute problems, issues, and solutions in the study of
information systems.
In general, the field can be divided into technical and behavioral approaches. Information
systems are sociotechnical systems. Though they are composed of machines, devices, and
“hard” physical technology, they require substantial social, organizational, and intellectual
investments to make them work properly.
I. Technical Approach
II. Behavioral Approach
III. Socio-technical Approach
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i. Technical Approach:
The technical approach to information systems emphasizes mathematically based models
to study information systems, as well as the physical technology and formal capabilities of
these systems. The disciplines that contribute to the technical approach are computer
science, management science, and operations research.
Computer science is concerned with establishing theories of computability,
methods of computation, and methods of efficient data storage and access.
Management science emphasizes the development of models for decision-making
and management practices.
Operations research focuses on mathematical techniques for optimizing selected
parameters of organizations, such as transportation, inventory control, and
transaction costs.
ii. Behavioral approach
An important part of the information systems field is concerned with behavioral issues that
arise in the development and long-term maintenance of information systems. Issues such as
strategic business integration, design, implementation, utilization, and management cannot
be explored usefully with the models used in the technical approach. Other behavioral
disciplines contribute important concepts and methods.
For instance,
Sociologists study information systems with an eye toward how groups and
organizations shape the development of systems and also how systems affect
individuals, groups, and organizations.
Psychologists study information systems with an interest in how human decision
makers perceive and use formal information.
Economists study information systems with an interest in what impact systems have
on control and cost structures within the firm and within markets.
The behavioral approach does not ignore technology. Indeed, information systems
technology is often the stimulus for a behavioral problem or issue. But the focus of this
approach is generally not on technical solutions. Instead, it concentrates on changes in
attitudes, management and organizational policy, and behavior.
iii. Socio-technical Systems
The socio-technical is:-
Suppliers of hardware and software (the technologists)
Business firms making investments and seeking to obtain value from the technology
Managers and employees seeking to achieve business value (and other goals) and
The contemporary legal, social, and cultural context (the firm’s environment).
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Together these actors produce what we call Management Information Systems.
1.4. The Evolution and Characteristics of Information age
The information age
The Information Age (also known as the Computer Age, Digital Age, or New Media Age)
is a historic period in the 21st century characterized by the rapid shift from traditional
industry that the Industrial Revolution brought through industrialization, to an economy
based on information technology.
The onset of the Information Age can be associated with the development of transistor
technology, particularly the MOSFET (metal-oxide-semiconductor field-effect transistor),
which revolutionized modern technology and became the fundamental building block of
digital electronics in the information age.
According to the United Nations Public Administration Network; the Information Age
formed by capitalizing on computer microminiaturization advances.
This evolution of technology in daily life and social organization has led to the
modernization of information and communication processes becoming the driving force of
social evolution.
Characteristics of information age (Assignment)
1.5. What is Information Technology (IT)?
Information technology (IT) is the study, design, development, implementation, support or
management of computer-based information systems, particularly computer applications
and computer hardware.
IT encompasses all forms of technology used to create, store, exchange, and use
information in its various forms.
IT can be considered as the use of modern technologies for capturing, processing,
storing, retrieval and communication of information whether in the form of numerical
data, text, sound, or image.
It refers to a wide variety of items and abilities used in the creation storage and dispersal
of information.
It is the study of information handling and its use in sacristy by means of modern
technology (i.e. do not include the traditional method information handling such as paper
and pencil). This includes the acquitting processing storage and communication of
information in any form by appropriate means IT, as (computer science) the collection of
technologies that deal specifically with processing, storing, and communicating information,
including all types of computer and communication systems as well as reprographics
methodologies.
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Component of IT
While dealing with the concepts of IT there are three components that we should have
known in order to use the concept of IT effectively and productively. These are:
i. Computer
ii. Communications networks, and
iii. Know-how
The ways in which these elements are combined determine the organizations to be
productive, effective and successful.
1.6. The Career side of Information Technology
Information Technology”, or IT - its more popular acronym, is a pretty broad term. It
covers a whole range of career paths that diverge into fascinating and lucrative
specializations in the digital world.
The most Careers of IT are:
i. Technical Support
Tech support is generally what most non-IT folk think of when they imagine an information
technology department. These types of IT experts can be known by a variety of titles
“help desk technicians,” “operations analysts,” or “problem managers” but at the end of
the day, their main job is to provide expert troubleshooting advice to clients.
Technical support typically handles hardware and software issues at the user level,
helping out the less tech-savvy with their computer problems making communication skills,
problem solving, and well-rounded tech knowledge an asset.
ii. Programmers
Computer programmers are the brains behind software functions they write and test the
code that makes up software programs. This might range from simple computer games or
word processors all the way up to complicated operating systems and database
management systems.
iii. Web Developers
Web developers often have the most visible jobs. They’re the ones who are responsible
for building websites and the infrastructures behind them making a careful balance of
creativity and technical prowess a must.
Web developers may also be known as “web producers,” “multimedia architects,” and
“internet engineers”, making their titles as diverse as their work portfolios.
iv. Computer Systems Analyst
Computer systems analysts are the multi-taskers of information technology; they have to
understand computer hardware, software, and networks and how they all come to work
together.
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v. IT Security
IT security is one of the biggest up-and-coming areas of tech in the market today they’re
in charge of keeping organizations safe from malicious digital attacks. This includes
implementing and running security software, scanning for abnormalities, upgrading
systems, and keeping their company informed of the risks involved in daily activities. This
job requires a lot of problem solving, crisis management, and effective communication
between team members and higher-ups.
vi. Network Engineer
Network engineers have a lot on their plate in terms of duties they’re in charge of setting
up, administering, and maintaining and upgrading local and wide area networks for an
organization.
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