What is management information systems

What is Management Information
Systems?
Management Information Systems (MIS) is the study of people, technology, organizations and the
relationships among them. MIS professionals help firms realize maximum benefit from investment in
personnel, equipment, and business processes. MIS is a people-oriented field with an emphasis on
service through technology. If you have an interest in technology and have the desire to use
technology to improve people’s lives, a degree in MIS may be for you.
Businesses use information systems at all levels of operation to collect, process and store data.
Management aggregates and disseminates this data in the form of information needed to carry out
the daily operations of business. Everyone who works in business, from someone who pays the bills
to the person who makes employment decisions, uses information systems. A car dealership could
use a computer database to keep track of which products sell best. A retail store might use a
computer-based information system to sell products over the Internet. In fact, many (if not most)
businesses concentrate on the alignment of MIS with business goals to achieve competitive
advantage over other businesses.
MIS professionals create information systems for data management (i.e., storing, searching and
analyzing data). In addition, they manage various information systems to meet the needs of
managers, staff and customers. By working collaboratively with various members of their work
group, as well as with their customers and clients, MIS professionals are able to play a key role in
areas such as information security, integration and exchange. As an MIS major, you will learn to
design, implement and use business information systems in innovative ways to increase the
effectiveness and efficiency of your company.
A common misconception that MIS only concerns programming. However, programming is just a
small part of the MIS curriculum. While programming concepts represent some of the founding
concepts and information systems development, implementation and use, many jobs in MIS do not
utilize programming at all. A large portion of the MIS degree focuses on data analysis, teamwork,
leadership, project management, customer service and underlying business theories. These aspects
of the degree are what set the MIS professional apart from a computer science specialist.
 Do you enjoy working with people?
 Would you enjoy the chance to work on global problems with people from all over the world?
 Do you enjoy analyzing and solving problems?
 Do you want to create innovative, cutting-edge technology solutions?
 Do you want to learn how to make businesses more efficient, effective and competitive?
Then you should consider as your major the field that is experiencing a critical shortage of
professionally trained individuals. A field where demand is skyrocketing with projected growth rates
of 38 percent – the fastest of any business discipline (U.S. Bureau of Labor Statistics).
MIS professionals make business better

Below are some frequently asked questions regarding careers in MIS. This information will help you
learn more about a career in MIS and to better understand the opportunities such a career may have
in store for you.
What kinds of people pursue MIS degrees?
The profiles of MIS professionals are varied, but in general, such individuals possess many of the
following traits:
 good problem solving skills
 ability to effectively manage time and resources
 a clear vision of ―the big picture‖ as well as the ―small details‖
 a desire to work closely with other people
 excellent communication skills
 ability to think strategically about technology
 a desire to take responsibility for developing and implementing their own ideas
What are typical career options for MIS professionals?
 IT Consultant
 Web Developer
 Information Systems Manager
 Business Intelligence Analyst
 Network Administrator
 Business Application Developer
 Systems Analyst
 Technical Support Specialist
 Business Analyst
 Systems Developer
Why should I choose to major in MIS?
 Job satisfaction
 High placement rate
 High salaries
 Exciting field
 Challenging field

 Hands-on problem solving
 Innovation and creativity
 Global opportunities
 Great chance for advancement
 You can have an impact!
What is an average salary for an MIS professional?
MIS majors have one of the highest starting salaries of all the undergraduate degree programs in
Mays Business School. The average starting salaries of our MIS graduates in 2012 was $57,705
with top students commanding salaries as high as $72,000
A management information system (MIS) provides information that organizations need to manage
themselves efficiently and effectively.
[1]
Management information systems are typically computer systems
used for managing five primary components: hardware, software,data (information for decision making),
procedures (design,development and documentation), and people (individuals, groups, or
organizations). Management information systems are distinct from other information systems, in that they
are used to analyze and facilitate strategic and operational activities.
[2]
Academically, the term is
commonly used to refer to the study of how individuals, groups, and organizations evaluate, design,
implement, manage, and utilize systems to generate information to improve efficiency and effectiveness
of decision making, including systems termed decision support systems, expert systems, and executive
information systems.
[2]
Most business schools (or colleges of business administration within universities)
have an MIS department, alongside departments of accounting, finance, management, marketing, and
sometimesThe system provides information on the past, present and project future and on relevant
events inside and outside the organization . It may be defined as a planned and integrated system for
gathering relevant data, converting it in to right information and supplying the same to the concerned
executives. The main purpose of MIS is to provide the right information to the right people at the right
time.
The Concept of management information systems originated in the 1960s and become the byword of
almost all attempts to relate computer technology and systems to data processing in business . During
the early 1960s , it became evident that the computer was being applied to the solution of business
problem in a piecemeal fashion, focusing almost entirely on the computerization of clerical and record –
keeping tasks. The concepts of management information systems was developed to counteract such in
efficient development and in effective use of the computer. The MIS concepts is vital to efficient and
effective computer use in business of two major reasons:
· It serves as a systems framework for organizing business computer applications. Business applications
of computers should be viewed as interrelated and integrated computer – based information systems and
not as independent data processing job .
· In emphasizes the management orientation of electronics information processing in business . The
primary goal of computer based information systems should be the processing of data generated by
business operations.
A management information system is an integrated man – machine systems that provides information to
support the planning and control function of manager in an organization .
· The out put of an MIS is information that sub serves managerial functions. When a system provides
information to persons who are not managers, then it will not be considered as part of an MIS . For
.example , an organization often process a lot of data which it is required by law to furnish to various

government regulatory agencies. Such a system, while it may have interfaces with an MIS, would not be
a part of it, Instances of such systems are salary disclosures and excise duty statements. By the same
token to sophisticated computer – aided design system for engineering purposes would also not be a part
of an MIS.
· Generally, MIS deals with information that is systematically and routinely collected in accordance with a
well-defined set of rules. Thus, and MIS is a part of the formal information network in an organization.
Information that has major managerial planning significance is sometimes collected at golf courses. Such
information is not part of MIS, how ever, one- shot market research data collected to gauge the potential
of a new product does not come with in the scope of an MIS by our definition because although such
information may be very systematically collected it is not collected on a regular basis.
· Normally, the information provided by an MIS helps the managers to make planning and control
decisions. Now, we will see, what is planning and control. Every organization in order to function must
perform, certain operations. For Example, a car manufacturer has to perform certain manufacturing
activities, a wholesaler has o provide water to its area of jurisdiction. All these are operations that need to
be done. Besides, these operations, an organization must make plans for them. In other words it must
decide on how many and what type of cars to make next month or what commissions to offer retailers or
what pumping stations to install in the next five years.
Also an organization must control the operations in the light of the plans and targets developed in the
planning process. The car manufacturer must know if manufacturing operations are in line with the targets
and if not, he must make decisions to correct the deviation or revise his plans. Similarly the wholesaler
will want to know the impacts that his commissions have had on sales and make decisions to correct
adverse trends. The municipal corporation will need to control the tendering process and contractors who
will execute the pumping station plans.
Generally, MIS is concerned with planning and control. Often there are elaborate systems for information
that assists operations. For example, the car manufacturer will have a system for providing information to
the workers on the shop floor about the job that needs to be done on a particular batch of material. There
may be route sheets, which accompany the rate materials and components in their movement through
various machines. This system per se provides only information to support operation. It has no
managerial decision-making significance. It I not part of an MIS. If, however, the system does provided
information on productivity, machine utilization or rejection rates, then we would say that the system is
part of an MIS.
· Generally MIS has all the ingredients that are employed in providing information support to manager to
making planning and control decisions. Managers often use historical data on an organization’s activities
as well as current status data make planning and control decisions. Such data comes from a data base
which is contained in files maintained by the organization . This data base is an essential component of
an MIS. Manual procedures that are used to collect and process information and computer hardware are
obvious ingredients of an MIS . These also form part of the MIS. In summary , when we say that ― an MIS
is an integrated man – machine systems that provided information to supports the planning and control
function of managers in an origination . It does the following function .
- sub serves managerial function
- collects stores , evaluates information systematically and routinely
- supports planning and control decisions
- Includes files , hardware , software , software and operations research models.
Effective management information systems are needed by all business organization because of the
increased complexity and rate of change of today’s business environment . For Example, Marketing
manager need information about sales performance and trends, financial manger returns, production
managers needs information analyzing resources requirement and worker productivity and personnel
manager require information concerning employee compensation and professional development. Thus,

effective management information systems must be developed to provide modern managers with the
specific marketing , financial, production and personnel information products they required to support their
decision making responsibilities .
An MIS provides the following advantages.
1. It Facilitates planning : MIS improves the quality of plants by providing relevant information for sound
decision – making . Due to increase in the size and complexity of organizations, managers have lost
personal contact with the scene of operations.
2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and
there by avoids the confusion which may arise when managers are flooded with detailed facts.
3. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for
monitoring operations at lower levels. MIS is successfully used for measuring performance and making
necessary change in the organizational plans and procedures.
4. It brings Co ordination : MIS facilities integration of specialized activities by keeping each department
aware of the problem and requirements of other departments. It connects all decision centers in the
organization .
5. It makes control easier : MIS serves as a link between managerial planning and control. It improves the
ability of management to evaluate and improve performance . The used computers has increased the
data processing and storage capabilities and reduced the cost .
6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information .
others, and grant degrees (at undergrad, masters, and PhD levels) in MIS.

Contents
[hide]
1 Overview
2 History
3 Types and Terminology
4 Advantages
5 Enterprise applications
6 Developing Information Systems
7 See also
8 References
9 External links
Overview[edit]
This section does not cite any references or sources. Please help
improve this section by adding citations to reliable sources. Unsourced
material may be challenged and removed. (May 2013)
This section may contain original research. Please improve
it by verifying the claims made and adding inline citations. Statements
consisting only of original research may be removed. (November 2012)
A management information system gives the business managers the information that they need to make
decisions. Early business computers were used for simple operations such as tracking inventory, billing,
sales, or payroll data, with little detail or structure
[3]
(see EDP). Over time, these computer
applications became more complex, hardware storage capacities grew, and technologies improved for
connecting previously isolated applications. As more data was stored and linked, managers sought
greater abstraction as well as greater detail with the aim of creating significant management reports from
the raw, stored data. Originally, the term "MIS" described applications providing managers with
information about sales, inventories, and other data that would help in managing the enterprise. Over
time, the term broadened to include: decision support systems, resource management and human
resource management, enterprise resource planning(ERP), enterprise performance
management (EPM), supply chain management (SCM), customer relationship
management (CRM), project management and database retrieval applications.

History[edit]
Kenneth and Jane Laudon identify five eras of MIS evolution corresponding to the five phases in the
development of computing technology: 1) mainframe and minicomputer computing, 2) personal
computers, 3) client/server networks, 4) enterprise computing, and 5) cloud computing.
[4]
The first era (mainframe and minicomputer) was ruled by IBM and their mainframe computers; these
computers would often take up whole rooms and require teams to run them - IBM supplied the hardware
and the software. As technology advanced, these computers were able to handle greater capacities and
therefore reduce their cost. Smaller, more affordable minicomputers allowed larger businesses to run their
own computing centers in-house.
The second era (personal computer) began in 1965 as microprocessors started to compete with
mainframes and minicomputers and accelerated the process of decentralizing computing power from
large data centers to smaller offices. In the late 1970s minicomputer technology gave way to personal
computers and relatively low cost computers were becoming mass market commodities, allowing
businesses to provide their employees access to computing power that ten years before would have cost
tens of thousands of dollars. This proliferation of computers created a ready market for interconnecting
networks and the popularization of the Internet.
As technological complexity increased and costs decreased, the need to share information within an
enterprise also grew—giving rise to the third era (client/server), in which computers on a common network
access shared information on a server. This lets thousands and even millions of people access data
simultaneously. The fourth era (enterprise) enabled by high speed networks, tied all aspects of the
business enterprise together offering rich information access encompassing the complete management
structure.
The fifth era (cloud computing) is the latest and employs networking technology to deliver applications as
well as data storage independent of the configuration, location or nature of the hardware. This, along with
high speed cellphone and wifi networks, led to new levels of mobility in which managers access the MIS
remotely with laptops, tablet PCs, and smartphones.
Types and Terminology[edit]
The terms Management Information System (MIS), information system, Enterprise Resource
Planning (ERP), and information technology management are often confused. Information systems and
MIS are broader categories that include ERP. Information technology management concerns the
operation and organization of information technology resources independent of their purpose.
Most management information systems specialize in particular commercial and industrial sectors, aspects
of the enterprise, or management substructure.
Management information systems (MIS), produce fixed, regularly scheduled reports based on data
extracted and summarized from the firm’s underlying transaction processing systems
[5]
to middle and
operational level managers to identify and inform structured and semi-structured decision problems.
Decision Support Systems (DSS) are computer program applications used by middle management to
compile information from a wide range of sources to support problem solving and decision making.

Executive Information Systems (EIS) is a reporting tool that provides quick access to summarized
reports coming from all company levels and departments such as accounting, human resources and
operations.
Marketing Information Systems (MIS) are Management Information Systems designed specifically for
managing the marketing aspects of the business.
Office Automation Systems (OAS) support communication and productivity in the enterprise by
automating work flow and eliminating bottlenecks. OAS may be implemented at any and all levels of
management.
School Information Management Systems (SIMS) cover school administration,and often including
teaching and learning materials.
Enterprise Resource Planning (ERP) facilitates the flow of information between all business functions
inside the boundaries of the organization and manage the connections to outside stakeholders.
[6]
Advantages[edit]
The following are some of the benefits that can be attained for different types of management information
systems.
[7]
Companies are able to highlight their strengths and weaknesses due to the presence of revenue
reports, employees' performance record etc. The identification of these aspects can help the
company improve their business processes and operations.
Giving an overall picture of the company and acting as a communication and planning tool.
The availability of the customer data and feedback can help the company to align their business
processes according to the needs of the customers. The effective management of customer data can
help the company to perform direct marketing and promotion activities
Types of Management Information
Systems
A management information system (MIS) is a computer-based system that provides the information
necessary to manage an organization effectively. An MIS should be designed to enhance communication
among employees, provide an objective system for recording information and support the organization's
strategic goals and direction. There are four types of MIS that will be introduced in ascending order of
sophistication.
Transaction Processing Systems
1. These systems are designed to handle a large volume of routine, recurring transactions.
They were first introduced in the 1960s with the advent of mainframe computers. Transaction
processing systems are used widely today. Banks use them to record deposits and payments into

accounts. Supermarkets use them to record sales and track inventory. Most managers use these
systems to deal with tasks such as payroll, customer billing and payments to suppliers.
Operations Information Systems
2. These systems were introduced after transaction processing systems. An operations
information system gathers comprehensive data, organizes it and summarizes it in a form that is
useful for managers. Most of these systems access data from a transaction processing system
and organize it into a form usable by managers. Managers use operations information systems to
obtain sales, inventory, accounting and other performance-related information.
Decision Support Systems (DSS)
3. A DSS is an interactive computer system that can be used by managers without help
from computer specialists. A DSS provides managers with the necessary information to make
intelligent decisions. A DSS has three fundamental components:
1. Database management system (DBMS): Stores large amounts of data relevant to problems the
DSS has been designed to tackle.
2. Model-based management system (MBMS): Transforms data from the DBMS into information
that is useful in decision making.
3. Dialog generation and management system (DGMS): Provides a user-friendly interface
between the system and the managers who do not have extensive computer training.
Expert Systems and Artificial Intelligence
4. These systems use human knowledge captured in a computer to solve problems that
ordinarily need human expertise. Mimicking human expertise and intelligence requires that the
computer (1) recognize, formulate and solve a problem; (2) explain solutions and (3) learn from
experience. These systems explain the logic of their advice to the user; hence, in addition to
solving problems they can also serve as a teacher. They use flexible thinking processes and can
accommodate new knowledge.
Considerations
5. A potential problem with relying on electronic communication and processing of
information is the loss of the vital human element. Sometimes because of the complexity of
information, an MIS report cannot effectively summarize it. Very rich information is needed to
coordinate and run an enterprise and certain classes of information cannot be quantified. For
example, it might be wrong to evaluate an employee's performance solely based on numbers
generated by an MIS. Numbers can indicate a performance problem but a face-to-face meeting
will be necessary to discuss the nature of the problem.
Types of MIS?
Answer
MIS stands for Management Information Systems. There are two main kinds. The
first is routine, ordinary daily work. The second is a variety of operations that require
decision making.
Types of MIS

A management information system (MIS) is a computer-based system that supplies the necessary
information to efficiently manage an organization. This system entails three primary resources:
information, technology and people. MIS is designed to record... More »
difficulty: Easy
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Q&A Related to "Types of MIS?"
What are types of mis?
Management information systems are those systems that allow managers to make decisions for the
successful operation of businesses. Management information systems consist of computer
http://wiki.answers.com/Q/What_are_types_of_mis
Management information system
A management information system (MIS) provides information that is
needed to manage organizations efficiently and effectively.
Management information systems are not on Explain various
types of Systems in MIS?
Posted in Management Information System | Email This Post
Types of the System in the Management Information Systems
1. Conceptual Systems
a. Are theoretical and explanatory in the nature.
b. Provide the much needed clarification.
c. Provide theoretical framework for which there may or may not be any real life
counterpart.
d. E.g. of such systems can be philosophy, theology etc.
2. Empirical Systems
a. Are very practical, specific and also very operational in the nature.
b. Can be based on the conceptual system.
c. Examination system, surgery act as very good examples of the empirical systems.
3. Open Systems
a. Involve continuous interaction with the environment.
b. So exchanges the information, material, energy with the environment.

c. Is open and also self organizing in the nature.
d. Is also adoptive or adaptive to the changing environment as it is flexible.
4. Closed Systems
a. Shuns any kind of the exchange with the environment.
b. Is rigid in nature.
c. Is not at all amenable to the change.
d. Is also self contained.
e. Is somewhat isolated in the nature.
f. Is having a well defined boundary.
g. Is not at all adaptive in the nature.
5. Natural Systems
a. Such Systems exist and also abound in the nature.
b. Are also not at all the results of the human endeavors.
c. Rivers, mountains, minerals etc. are the major examples of the natural Systems.
6. Artificial Systems
a. Are manufactured (man made).
b. Examples of such Systems are dams, canals, roads, machines, factories etc.
7. Probabilistic Systems
a. Based on the predictability of the behavior or the outcome.
8. Deterministic Systems
a. In such Systems, the interaction of the elements is known.
b. As the behavior of the elements is pre determined, it becomes possible to work
upon the reaction well in the advance
ly computer What is Simons decision-making
model?
Answer:
Answer
Simon's Model is based on premise that decision rash null. Decision making in Simon's Model is characterized
by limited information processing and use of rules. Simmons decision-making model there are four phases
1) Intelligence phase
2) Design phase

3) Choice phase
4) Implementation phase
Initially the problem comes and we are in the intelligence phase thinking of the problem as it comes and then
we try to find out what the solution to the given problem and then we move to design phase. In the design
phase the way and method to solve the problem is thought and we actually try analyze the problem, we try to
find the algorithms and the way that can actually solve the problem and hence we use the genetic algorithm to
find the solution to the given problem .After finding the method which is to be applied to the given problem
we move to choice phase and here the actual work of finding the best algorithm come .Here we try to find the
best algorithm from the given set of algorithm we have the option of choosing the algorithms such as "ACO"
algorithm which is called the ant colony optimization algorithm or we have the choice of finding the algorithm
such as Simulated annealing (SA) is a related global optimization technique that traverses the search space by
testing random mutations on an individual solution. A mutation that increases fitness is always accepted. A
mutation that lowers fitness is accepted probabilistically based on the difference in fitness and a decreasing
temperature parameter. In SA parlance, one speaks of seeking the lowest energy instead of the maximum
fitness. SA can also be used within a standard GA algorithm by starting with a relatively high rate of mutation
and decreasing it over time along a given schedule. After deciding that genetic algorithm is the most suitable
algorithm for the programming we move to the next step which is the implemetation phase here the real
implemeation of the slotuin is done we implemet the solution to the given problem by using the geneteic
algorithm according to the given problem.
In the given problem a list of 26 items is given they all have different price, different weights and different
volumes. The problem says that we have to find the items which can be fitted in to the given space of the
container the number of items chosen to be fitted in to the given space should be such that the weight and the
volume of the selected items should not be more than the total allowed volume and weight in the container.
The care has to be taken such that the total weight and volume of the selected items should not exceed more
than the allowed weight and the volume.
Answer
Simmons decision-making model there are four phases
1) Intelligence phase
2) Design phase
3) Choice phase
4) Implementation phase
Initially the problem comes and we are in the intelligence phase thinking of the problem as it comes and then
we try to find out what the solution to the given problem and then we move to design phase. In the design
phase the way and method to solve the problem is thought and we actually try analyze the problem, we try to

find the algorithms and the way that can actually solve the problem and hence we use the genetic algorithm to
find the solution to the given problem .After finding the method which is to be applied to the given problem
we move to choice phase and here the actual work of finding the best algorithm come .Here we try to find the
best algorithm from the given set of algorithm we have the option of choosing the algorithms such as "ACO"
algorithm which is called the ant colony optimization algorithm or we have the choice of finding the algorithm
such as Simulated annealing (SA) is a related global optimization technique that traverses the search space by
testing random mutations on an individual solution. A mutation that increases fitness is always accepted. A
mutation that lowers fitness is accepted probabilistically based on the difference in fitness and a decreasing
temperature parameter. In SA parlance, one speaks of seeking the lowest energy instead of the maximum
fitness. SA can also be used within a standard GA algorithm by starting with a relatively high rate of mutation
and decreasing it over time along a given schedule. After deciding that genetic algorithm is the most suitable
algorithm for the programming we move to the next step which is the implemetation phase here the real
implemeation of the slotuin is done we implemet the solution to the given problem by using the geneteic
algorithm according to the given problem.
In the given problem a list of 26 items is given they all have different price, different weights and different
volumes. The problem says that we have to find the items which can be fitted in to the given space of the
container the number of items chosen to be fitted in to the given space should be such that the weight and the
volume of the selected items should not be more than the total allowed volume and weight in the container.
The care has to be taken such that the total weight and volume of the selected items should not exceed more
than the allowed weight and the volume.
systemSimon's Model of Decision Making
Newell and Simon formulated a methodology for human information processing. This model is
conceptual in nature and goes hand in hand with the working of a digital computer.
According to this model, a human being interacts with the external environment, gets information, and
processes them. The initial interaction between the human being and the environment is triggered by
stimuli. The sensory organs (receptors) accept the environment and pass it on to the
brain (processor). The brain transfers the information so obtained intoSTM and LTM. Decisions made
by the brain are conveyed to the environment by various organs of the human body (effectors) in the
form of speech, physical activity, written messages, etc. To illustrate, a poet visualizes a beautiful
natural scenario, is totally absorbed in it and the response to this stimulus is a poem that flows
spontaneously. The model, as already mentioned, goes hand in hand with the working of a digital
computer. A digital computer gets data through one of its input devices ("receptor" in the Newell and

Simon model), passes the same to its central processing unit ("brain" in the Newell and Simon model),
which in turn, after processing, sends an output through its output unit ("effectors" in the Newell and
Simon model). Important information is stored in external memory units.
Any human being, in response to a stimulus, reacts and decides what to do. For example, if the share
prices are falling the initial reaction is panic. Shareholders then decide either to offload all the shares
or wait for the market to pick up. How do they decide on these? Are there any models available that
can explain clearly the decision-making process? A well-known model on the human decision-making
process was proposed by H.A. Simon. Simon's decision-making model consists of three major stages:
Stage I: Problem identification and data collection stage (also called intelligence phase).
Stage 2: Identification and planning of alternative solutions (also called as design phase)
Stage 3: Selection of a solution from multiple alternatives, implementing and monitoring (also called
as choice phase.)
s - these systeWhat are the advantages
and disadvantages of MIS?
Answer:
ADVANTAGES
decision - making . Due to increase in the size and complexity of organizations, managers have lost personal
contact with the scene of operations.
2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there
by avoids the confusion which may arise when managers are flooded with detailed facts.
organization .
ability of management to evaluate and improve performance . The used computers has increased the data
processing and storage capabilities and reduced the cost .

6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information.
reference:
http://www.management-hub.com/information-management-advantages.html
DISADVANTAGES
1.highly senstive requires constant monitoring.
2.buddgeting of MIS extremely difficult.
3.Quality of outputs governed by quality of inputs.
4.lack of flexiblity to update itself.
5.effectiveness decreases due to frequent changes in top management
6.takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude
of worker etc...
msdata dictionary
A data dictionary is a collection of descriptions of the data objects or items in a data model
for the benefit of programmers and others who need to refer to them. A first step in
analyzing a system of objects with which users interact is to identify each object and its
relationship to other objects. This process is called data modeling and results in a picture of
object relationships. After each data object or item is given a descriptive name, its
relationship is described (or it becomes part of some structure that implicitly describes
relationship), the type of data (such as text or image or binary value) is described, possible
predefined values are listed, and a brief textual description is provided. This collection can
be organized for reference into a book called a data dictionary.
When developing programs that use the data model, a data dictionary can be consulted to
understand where a data item fits in the structure, what values it may contain, and basically
what the data item means in real-world terms. For example, a bank or group of banks could
model the data objects involved in consumer banking. They could then provide a data
dictionary for a bank's programmers. The data dictionary would describe each of the data
items in its data model for consumer banking (for example, "Account holder" and
""Available credit").
1. It Facilitates planning : MIS improves the quality of plants by providing relevant
information for sound decision – making . Due to increase in the size and complexity
of organizations, managers have lost personal contact with the scene of operations.

2. In Minimizes information overload : MIS change the larger amount of data in to
summarized form and there by avoids the confusion which may arise when
managers are flooded with detailed facts.
3. MIS Encourages Decentralization : Decentralization of authority is possibly when
there is a system for monitoring operations at lower levels. MIS is successfully used
for measuring performance and making necessary change in the organizational
plans and procedures.
4. It brings Co ordination : MIS facilities integration of specialized activities by
keeping each department aware of the problem and requirements of other
departments. It connects all decision centers in the organization .
5. It makes control easier : MIS serves as a link between managerial planning and
control. It improves the ability of management to evaluate and improve performance
. The used computers has increased the data processing and storage capabilities
and reduced the cost .
6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the
informatio
Data Dictionary
Definition - What does Data Dictionary mean?
A data dictionary is a file or a set of files that contains a database's metadata. The data dictionary
contains records about other objects in the database, such as data ownership, data relationships to
other objects, and other data.
The data dictionary is a crucial component of any relational database. Ironically, because of its
importance, it is invisible to most database users. Typically, only database administrators interact
with the data dictionary.
Techopedia explains Data Dictionary
Answer:
ADVANTAGES
decision - making . Due to increase in the size and complexity of organizations, managers have lost personal
contact with the scene of operations.
2. In Minimizes information overload : MIS change the larger amount of data in to summarized form and there
by avoids the confusion which may arise when managers are flooded with detailed facts.

organization .
ability of management to evaluate and improve performance . The used computers has increased the data
processing and storage capabilities and reduced the cost .
6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates the information.
reference:
http://www.management-hub.com/information-management-advantages.html
DISADVANTAGES
1.highly senstive requires constant monitoring.
2.buddgeting of MIS extremely difficult.
3.Quality of outputs governed by quality of inputs.
4.lack of flexiblity to update itself.
5.effectiveness decreases due to frequent changes in top management
6.takes into account only qualitative factors and ignores non-qualitative factors like morale of worker, attitude
of worker etc...
Biyani's Think Tank
Concept based notes
Management
Information System
(BBA Part-II)
Ms. Kusumlata Bhargava
Deptt. Of Management
Biyani Girls College, Jaipur
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Concept & Copyright :
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E-mail : acad@biyanicolleges.org
Website :www.gurukpo.com; www.biyanicolleges.org
First Edition : 2009
Leaser Type Setted by :
Biyani College Printing Department
While every effort is taken to avoid errors or omissions in this Publication, any
mistake or omission that may have crept in is not intentional. It may be taken note of
that neither the publisher nor the author will be responsible for any damage or loss
of
any kind arising to anyone in any manner on account of such errors and omissions.
For more detail: - http://www.gurukpo.comPreface
I am glad to present this book, especially designed to serve the needs of the
students. The book has been written keeping in mind the general weakness in
understanding the fundamental concepts of the topics. The book is self-explanatory
and
adopts the “Teach Yourself” style. It is based on question-answer pattern. The
language
of book is quite easy and understandable based on scientific approach.
This book covers basic concepts related to the microbial understandings about
diversity, structure, economic aspects, bacterial and viral reproduction etc.
Any further improvement in the contents of the book by making corrections,
omission and inclusion is keen to be achieved based on suggestions from the readers
for which the author shall be obliged.
I acknowledge special thanks to Mr. Rajeev Biyani, Chairman & Dr. Sanjay Biyani,
Director (Acad.) Biyani Group of Colleges, who are the backbones and main concept
provider and also have been constant source of motivation throughout this
Endeavour.
They played an active role in coordinating the various stages of this Endeavour and
spearheaded the publishing work.
I look forward to receiving valuable suggestions from professors of various
educational institutions, other faculty members and students for improvement of the
quality of the book. The reader may feel free to send in their comments and
suggestions
to the under mentioned address.
Author
For more detail: - http://www.gurukpo.comSyllabus
B.B.A. Part-II
Management Information System
Introduction to MIS : Meaning and Role of MIS, Definition of MIS, System
Approach to
MIS, MIS Organization within a Company. Concept of Balanced MIS, Effectiveness
and

Efficiency Criteria.
Overview of System and Design, Feasibility Analysis, Design, Implementation,
Testing
and Evaluation. Introduction to Systems Development Life Cycle and its Phases.
MIS Planning : MIS Structure and Components, MIS Features, Problem and
Derivation
of MIS Plans, Prioritization and Developmental Strategies.
Conceptual Design of MIS : Definition of the Problem, System Objectives and
System
Constraints, Analysis of Information Source.
Alternative System Design and Selection of Optimal System.
Conceptual System Design Document.
Detailed System Design and Implementation : Application of Basic System Design
Concepts to MIS, Involvement of End-User and Role of MIS Department and System
Analyst, Role of Top Management during Design an Implementation. System
Evaluation Review and Update. Management and Control of MIS Function.
Advanced
MIS Concept, Decision Support System.
MIS in Operation : (See Note at End) : MIS for Accounting and Finance Function
MIS
for Personnel Systems, MIS for Marketing Systems, Production & Inventory System.
Note : A STANDARD LAYOUT IS TO BE ADOPTED FOR ALL MIS.
□ □ □
For more detail: - http://www.gurukpo.comContent
S. No. Name of Topic Page No.
1. Introduction to MIS 7-14
1.1 Introduction & Objective of MIS
1.2 Computer Based MIS
1.3 Organizational Need for MIS in Company
1.4 Pre-requisites of Effective MIS
2. Information System of Decision Making 15-20
2.1 Introduction & Characteristics of MIS
2.2 Steps in Decision Making
2.3 Purpose of DSS
2.4 Herbert S. Model
3. Information 21-30
3.1 Information
3.2 Classification of Information
3.3 Types of Information System
3.4 Value of Information
3.5 Data Collection Method
4. Development of MIS 31-37
4.1 Introduction & MIS Planning

4.2 Development of MIS
4.3 Approaches to MIS Development
4.4 Factors Responsible for Development of MIS
S. No. Name of Topic Page No.
5. Database Management System 38-47
5.1 Introduction
5.2 Database Design
5.3 Model of DBMS
5.4 Views in DBMS
5.5 Data Access
For more detail: - http://www.gurukpo.com6. Network 48-54
6.1 Data Communication
6.2 Introduction of Network
6.3 Types of Computer Network
6.4 Topologies
7. System Analysis & Design 55-78
7.1 Introduction
7.2 Types of Business System
7.3 System Analysis‟s Tools
7.4 Introduction to System Analysis & Design
7.5 Feasibility Study & Cost Benefit Analysis
7.6 System Documentation
8. MIS in Operation 79-86
8.1 MIS for Finance
8.2 MIS for Marketing
8.3 MIS for Production
8.4 MIS for HRM
□ □ □
For more detail: - http://www.gurukpo.comChapter-1
Introduction to MIS
Q.1 What is MIS? Discuss in detail?
OR
Describe the three words of MIS: Management, Information, System.
OR
Discuss the objectives and characteristics of MIS.
Ans.: Management Information Systems (MIS), referred to as Information
Management
and Systems, is the discipline covering the application of people, technologies,
and procedures collectively called information systems, to solving business
problems.
“'MIS' is a planned system of collecting, storing and disseminating data in the
form of information needed to carry out the functions of management.”

Academically, the term is commonly used to refer to the group of information
management methods tied to the automation or support of human decision
making, e.g. Decision Support Systems, Expert Systems, and Executive
Information Systems.
Management : Management is art of getting things done through and with the
people in formally organized groups. The basic functions performed by a
manager in an organization are: Planning, controlling, staffing, organizing, and
directing.
Information : Information is considered as valuable component of an
organization. Information is data that is processed and is presented in a form
which assists decision maker.
Information Generation
System : A system is defined as a set of elements which are joined together to
achieve a common objective. The elements are interrelated and interdependent.
Thus every system is said to be composed of subsystems. A system has one or
multiple inputs, these inputs are processed through a transformation process to
convert these input( s) to output.
Data Processing Information
For more detail: - http://www.gurukpo.comThese subsystems are interrelated
through a process of
Input - Throughput - Output
A system
Objectives of MIS :
Data Capturing : MIS capture data from various internal and external sources of
organization. Data capturing may be manual or through computer terminals.
Processing of Data : The captured data is processed to convert into required
information. Processing of data is done by such activities as calculating, sorting,
classifying, and summarizing.
Storage of Information : MIS stores the processed or unprocessed data for future
use. If any information is not immediately required, it is saved as an organization
record, for later use.
Retrieval of Information : MIS retrieves information from its stores as and when
required by various users.
Dissemination of Information : Information, which is a finished product of MIS,
is disseminated to the users in the organization. It is periodic or online through
computer terminal.
Objectives of MIS
Input Transformation
Process
Output
Data
Capture
Processing Dissemination

Retrieval
Storage of
Data
Source
User
For more detail: - http://www.gurukpo.comCharacteristics of MIS :
Systems Approach : The information system follows a systems approach.
Systems approach means taking a comprehensive view or a complete look at the
interlocking sub-systems that operate within an organization.
Management Oriented : Management oriented characteristic of MIS implies that
the management actively directs the system development efforts. For planning of
MIS, top-down approach should be followed. Top down approach suggests that
the system development starts from the determination of management‟s needs
and overall business objective. To ensure that the implementation of system‟s
polices meet the specification of the system, continued review and participation
of the manager is necessary.
Need Based : MIS design should be as per the information needs of managers at
different levels.
Exception Based : MIS should be developed on the exception based also, which
means that in an abnormal situation, there should be immediate reporting about
the exceptional situation to the decision –makers at the required level.
Future Oriented : MIS should not merely provide past of historical information;
rather it should provide information, on the basis of future projections on the
actions to be initiated.
Integrated : Integration is significant because of its ability to produce more
meaningful information. Integration means taking a comprehensive view or
looking at the complete picture of the interlocking subsystems that operate
within the company.
Common Data Flow : Common data flow includes avoiding duplication,
combining similar functions and simplifying operations wherever possible. The
development of common data flow is an economically sound and logical concept,
but it must be viewed from a practical angle.
Long Term Planning : MIS is developed over relatively long periods. A heavy
element of planning should be involved.
Sub System Concept : The MIS should be viewed as a single entity, but it must
be broken down into digestible sub-systems which are more meaningful.
Central database : In the MIS there should be common data base for whole
system
For more detail: - http://www.gurukpo.comQ.2 Highlight the Salient Features of
Computer which makes it an essential
component of MIS
OR

With the Penetration of Computer in Business Society, Information System has
got a new meaning, explain.
Ans.: Characteristics of Computerized MIS :
(i) Ability to process data into information with accuracy and high speed. It
involves complex computation, analysis, comparisons and summarization.
(ii) Organizing and updating of huge amount of raw data of related and
unrelated nature, derived from internal and external sources at different
periods of time.
(iii) The information processing and computer technology have been so
advanced that managers are able to obtain real time information about
ongoing activities and events without any waiting period.
(iv) The input data in computer can be converted into different output formats
for a variety of purpose. The system is so organized that managers at
different levels and in different activity units are in a position to obtain
information in whatever form they want , provided that relevant “
programmes” or instructions have been designed for the purpose.
(v) Super-human memory, tremendous volume of data and information and
the set of instructions can be stored in the computer and can be retrieved
as and when needed. Management can get bit of stored information from
the computer in seconds.
Advantages of Computer : The usage of computer gives following advantages in
comparison to manual MIS :
a) Speed : The speed of carrying out the given instructions logically and
numerically is incomparable between computers and human beings. A
computer can perform and give instructions in less than a millionth of
second
b) Accuracy : Computer can calculate very accurately without any errors.
c) Reliability : The information stored in the computer is in digital format.
The information can be stored for a long time and have long life. A user
may feel comfortable and be rely on, while using information stored in
computer.
d) Storage : Computer can store huge data for a long time in comparison to
human brain.
For more detail: - http://www.gurukpo.come) Automaticity : Computers perform
automatically in user friendly and
menu driven program.
f) Repetitiveness : Computer can be used repetitively to process information
without any mental fatigue as in case of human brain.
g) Diligence : A computer is an electronic device. It does not suffer from the
human traits of lack of concentration.
h) No Feeling : Computers are devoid of any emotions. They have no feelings
and no instincts because they are machines.
Limitations of Computer :

a) Lack of Common Sense : Computer is only an electronic device. It can not
think. If we provide an incorrect data, it does not have a commonsense to
question the correctness of the data.
b) Memory Without Brain : Computer can store data in its memory;
however, if a wrong instruction is given to computer it does not have a
brain to correct the wrong instruction.
Q.3 Discuss an Organizational Need for MIS in a Company?
Ans.: To facilitate the management decision making at all levels of company, the MIS
must be integrated. MIS units are company wide. MIS is available for the Top
management. The top management of company should play an active role in
designing, modifying and maintenance of the total organization wide
management information system.
Information system and Information technology have become a vital component
of any successful business and are regarded as major functional areas just like
any other functional area of a business organization like marketing, finance,
production and HR. Thus it is important to understand the area of information
system just like any other functional area in the business. MIS is important
because all businesses have a need for information about the tasks which are to
be performed. Information and technology is used as a tool for solving problems
and providing opportunities for increasing productivity and quality.
Information has always been important but it has never been so available, so
current and so overwhelming. Efforts have been made for collection and retrieval
of information, However, challenges still remain in the selection analysis and
interpretation of the information that will further improve decision making and
productivity.
For more detail: - http://www.gurukpo.comMIS for a Business Organization :
Support the Business Process : Treats inputs as a request from the customer and
outputs as services to customer. Supports current operations and use the system
to influence further way of working.
Support Operation of a Business Organization : MIS supports operations of a
business organization by giving timely information, maintenance and
enhancement which provides flexibility in the operation of an organizations.
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 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 assented in a competitive environment.
Q.4 Discuss the Prerequisites of an Effective MIS?
Ans.: Essential Requirement of an Effective MIS :
(i) Qualified System and Management Staff : The prerequisite of an effective

MIS is that it should be managed by qualified officers. These officers
should have a mutual understanding about the roles and responsibilities of
each other. be understand clearly the view of their fellow officers. For this,
each organization should have two categories of officers :
(a) System and Computer Experts who in addition to their expertise in
their subject area , they should also be capable of understanding
management concepts to facilitate the understanding of problems
asked by concern. They should also be clear about the process of
decision making and information requirements for planning.
(b) Management experts who should also understand quite-clearly the
concepts and operations of a computer. This basic knowledge of
computer will be useful will place them in a comfortable position,
while working with systems, technicians in designing or other wise,
of the information system.
(ii) Futuristic Perspective : An effective MIS should be capable of meeting the
future requirements of its executives as well. This capability can be
achieved by regular monitoring and updating the MIS.
For more detail: - http://www.gurukpo.com(iii) Support of Top Management : For a
management information system to
be effective, it must receive the full support of top management. The
Reasons for this are :
(a) Subordinate managers are usually lethargic about activities which
do not receive the support of their superiors.
(b) The resources involved in computer based information system are
larger and are growing larger and larger in view of importance
gained by management information system.
(iv) Common Database : It is an integrated collection of data and information
which is utilized by several information subsystems of an organization. A
common database may be defined as a super file which consolidates and
integrates data records formerly stored in a separate data file. Such a
database can be organized as an integrated collection of data records into a
single super file or it can be organized as an integrated collection of several
data file.
(v) Control and maintenance of MIS : Control of the MIS means the operation
of the system as it was designed to operate. Some times, users develop
their own procedures or short cut methods to use the system which
reduces its effectiveness.
□ □ □
Information System for Decision Making
Q.1 What do you understand by Decision Making? Discuss the nature and
characteristics of Decision?

Ans.: The word “decision “is derived from the Latin word “decido”. Which means “A
decision, therefore is
• A Settlement
• A fixed intuition to bringing to a conclusive result
• A judgment
• A resolution
Decision : A decision is the choice out of several options made by the decision
maker to achieve some objective in a given situation.
Business Decision : Business decisions are those which are made in the process
of conducting business to achieve its objective in a given situation.
Characteristic of Business Decision Making :
a) Sequential in nature.
b) Exceedingly complex due to risk and trade off.
c) Influenced by personal values.
d) Made in institutional setting and business environment.
Rational Decision Making : A rational decision is the one which, effectively and
efficiently, ensure the achievement of the goal for which the decision is made .In
reality there is no right or wrong decision but a rational decision or irrational
decision which depends on situation.
Type of Rationality :
Objectively : Maximum the value of the objectives.
Subjective : If it is minimize the attainment of value in relation to the knowledge
and awareness of subject.
Consciously : Extent the process of the decision making is a conscious one
Organizationally : degree of the orientation towards the organization.
For more detail: - http://www.gurukpo.comPersonal: Rational to the extent is
achieve‟s an individual‟s personal reason
(goals).
Type of Decision Making System : There are two types of decision making
system on the basis of knowledge about the environment.
(i) Closed : If the manager operates in a known environment then it is called
closed decision making system.
Conditions :
a) Manager knows the set of decision alternative and know their
outcome in term of values.
b) Manager has a model, by which decision alternatives can be
generated, tested and ranked.
c) The manager can choose one of them, based on some goal or
objective.
(ii) Open : If the manager operates in unknown environment then it is called
open decision making.
Conditions :
a) Manager does not know all alternatives.

b) Outcome is not known.
c) No methods or models are used.
d) Decide objective or goal; select one where his aspirates or desire are
met best.
Types of Decision : Types of decision are based on the degree of knowledge
about the out come of the events which are yet to take place.
Certainty : If the manager has full knowledge of event or outcome then it is a
situation of certainty.
Risk : If the manager has partial knowledge or probabilistic knowledge then it is
decision under risk.
Uncertainty : If the manager does not have any knowledge, it is decision making
under uncertainty
MIS converts the uncertainty to risk and risk to certainty. The decision at the low
level management is certain, at middle level of the management the decision is
under risk and at the top level management the decision is in under uncertain.
Nature of decision : Decision making is a complex task. To resolve the
complexity the nature of decision are of two types :
Programmed and Non-Programmed Decision :
For more detail: - http://www.gurukpo.coma) If a decision can be based on a rule,
methods or even guidelines, it is called
the programmed decision.
b) A decision which can not be made by using a rule or model is the nonprogrammed
decision.
Q.2 Discuss the essential steps in process of Decision Making?
Ans.: Decision making process is same as Hebert Simon Model.
Q.3 What is DSS? What is the purpose of Decision Support System in MIS.
Ans.: Decision Support System refers to a class of systems which support in the
process of decision making and does not always give a decision it self.
Decision Support Systems (DSS) are a specific class of computerized information
system that supports business and organizational decision-making activities. A
properly designed DSS is an interactive software-based system intended to help
decision makers compile useful information from raw data, documents, personal
knowledge, and/or business models to identify and solve problems and make
decisions
DSS is an application of Hebert Simon model, as discussed, the model has three
phases :
i) Intelligence
ii) Design
iii) Choice
The DSS basically helps in the information system in the intelligence phase where
the objective is to identify the problem and then go to the design phase for
solution. The choice of selection criteria varies from problem to problem.
It is therefore, required to go through these phases again and again till

satisfactory solution is found.
In the following three phase cycle, you may use inquiry, analysis, and models
and accounting system to come to rational solution.
These systems are helpful where the decision maker calls for complex
manipulation of data and use of several methods to reach an acceptable solution
using different analysis approach. The decision support system helps in making a
decision and also in performance analysis. DSS can be built around the rule in
case of programmable decision situation. The rules are not fixed or
predetermined and requires every time the user to go through the decision
making cycle as indicated in Herbert Simon model.
Attributes :
For more detail: - http://www.gurukpo.comi) DSS should be adaptable and flexible.
ii) DSS should be interactive and provide ease of use.
iii) Effectiveness balanced with efficiency (benefit must exceed cost).
iv) Complete control by decision-makers.
v) Ease of development by (modification to suit needs and changing
environment) end users.
vi) Support modeling and analysis.
vii) Data access.
viii) Standalone, integration and Web-based
DSS Characteristics :
i) Support for decision makers in semi structured and unstructured
problems.
ii) Support managers at all levels.
iii) Support individuals and groups.
iv) Support for interdependent or sequential decisions.
v) Support intelligence, design, choice, and implementation.
vi) Support variety of decision processes and styles
Q.4 Discuss in brief the Hebert A. Simon „Decision Support System Model‟.
Define the term Intelligence, Design and Choice as Model.
OR
Discuss the essential steps in process of decision making.
Ans.: There are three phases in Hebert Simon model :
Hebert Simon Model
INTELLIGENCE
DESIGN
CHIOCE
For more detail: - http://www.gurukpo.comIntelligence : In this phase MIS collects
the raw data. Further the data is sorted
and merged with other data and computation are made, examined and
presented. In this phase, the attention of the manager is drawn to the entire
problem situation, calling for a decision.

Design : Manager develops a model of problem situation on which he can
generate and test, summarizing the different decision alternatives and test the
feasibility of implementation. Assess the value of the decision outcome.
Choice : In this phase the manager evolves a selection criterion and selects one
alternative as decision based on selection criteria.
In these three phases if the manager fails to reach a decision, he starts the process
all over again from intelligence phase where additional data and information is
collected, the decision making process is refined, the selection criteria is changed
and a decision is arrived at.
□ □ □
Information
Q.1 What do you understand by Information? What are the characteristics of
Information?
Ans.: Data : Data is raw facts. Data is like raw material. Data does not interrelate and
also it does not help in decision making. Data is defined as groups of nonrandom
symbols in the form of text, images, voice representing quantities, action
and objects.
Information : Information is the product of data processing. Information is
interrelated data. Information is equivalent to finished goods produced after
processing the raw material. The information has a value in decision making.
Information brings clarity and creates an intelligent human response in the mind.
According to Davis and Olson : “Information is a data that has been processed
into a form that is meaningful to recipient and is of real or perceived value in the
current or the prospective action or decision of recipient.”
Information Generation
It is a most critical resource of the organization. Managing the information means
managing future. Information is knowledge that one derives from facts placed in
the right context with the purpose of reducing uncertainty.
Characteristics of Information :
The parameters of a good quality are difficult to determine for information.
Quality of information refers to its fitness for use, or its reliability.
Following are the essential characteristic features :
i) Timeliness : Timeliness means that information must reach the recipients
within the prescribed timeframes. For effective decision-making,
information must reach the decision-maker at the right time, i.e. recipients
must get information when they need it. Delays destroys the value of
information. The characteristic of timeliness, to be effective, should also
include up-to-date, i.e. current information.
Data Processing Information
For more detail: - http://www.gurukpo.comii) Accuracy : Information should be
accurate. It means that information

should be free from mistakes, errors &, clear Accuracy also means that the
information is free from bias. Wrong information given to management
would result in wrong decisions. As managers decisions are based on the
information supplied in MIS reports, all managers need accurate
information.
iii) Relevance : Information is said to be relevant if it answers especially for
the recipient what, why, where, when, who and why? In other words, the
MIS should serve reports to managers which is useful and the information
helps them to make decisions..
iv) Adequacy : Adequacy means information must be sufficient in quantity,
i.e. MIS must provide reports containing information which is required in
the deciding processes of decision-making. The report should not give
inadequate or for that matter, more than adequate information, which may
create a difficult situation for the decision-maker. Whereas inadequacy of
information leads to crises, information overload results in chaos.
v) Completeness : The information which is given to a manager must be
complete and should meet all his needs. Incomplete information may
result in wrong decisions and thus may prove costly to the organization.
vi) Explicitness : A report is said to be of good quality if it does not require
further analysis by the recipients for decision making.
vii) Impartiality : Impartial information contains no bias and has been
collected without any distorted view of the situation.
Q.2 What are the different types of Information?
Ans.: Classification of Information : The information can be classified in a number of
ways provide to better understanding.
Jhon Dearden of Harvard University classifies information in the following
manner :
(1) Action Verses No-Action Information : The information which induces
action is called action Information. „No stock„report calling a purchase
action is an action information.
The information which communicates only the status is No-Action
Information. The stock balance is no-action information.
(2) Recurring Verses No-Recurring Information : The information generated
at regular intervals is Recurring Information. The monthly sales reports,
the stock statement, the trial balance, etc are recurring information. The
For more detail: - http://www.gurukpo.comfinancial analysis or the report on the
market research study is norecurring information.
(3) Internal and external information : The information generated through
the internal sources of the organization is termed as Internal Information,
while the information generated through the govt. reports, the industry
survey etc., termed as External Information, as the sources of the data are
outside the organization.
The information can also be classified, in terms of its application :

• Planning Information : Certain standard norms and specifications are
used in planning of any activity. Hence such information is called the
Planning Information. e. g. Time standard, design standard.
• Control Information : Reporting the status of an activity through a
feedback mechanism is called the Controlling Information. When such
information shows a deviation from the goal or the objective, it will induce
a decision or an action leading to control.
• Knowledge Information : A collection of information through the library
records and the research studies to build up a knowledge base as an
information is known as Knowledge Information.
• Organization Information : When the information is used by everybody in
the organization, it is called Organization Information. Employee and
payroll Information is used by a number of people in an organization.
• Functional/ Operational Information : When the information is used in
the operation of a business it is called Functional/Operational
Information.
• Database Information : When the information has multiple use and
application, it is called as database information. Material specification or
supplier information is stored for multiple users.
Q.3 Explain the level of business activity with reference to information required?
Ans.: While developing an information management strategy within an organization,
it
is useful to consider informations need at on three levels :
• Corporate (Top Level )
• Team, Division, Business Unit (Middle Level)
• Individual (Low Level )
The needs of each of these three levels must be met if a coordinated and effective
solution is to be maintained in the long-term.
For more detail: - http://www.gurukpo.comFailure to address any one of the levels
will lead to areas of the business or
individuals finding their own solution, which may not fit well within the
strategic goals of the organization.
Corporate (Top Level Information) : At the top level corporate information that
is useful for the whole organization. This 'global' information is generally well
addressed by the corporate intranet. Examples of corporate information include
policies and procedures, HR information, online forms, phone directory, etc.
Interestingly, there may be a limited amount of truly global information, and it
may not deliver the greatest (measurable) business benefits.
Team, division, business unit (Middle level) : The middle level is perhaps the
most important, as it covers all the information shared within teams, divisions,
business units, etc. This information may be critical to the day-to-day activities of
the group, but of little interest to the rest of the organization. Examples include
project documentation, business unit specific content, meeting minutes, etc. This

level is generally poorly-served within organizations, although collaboration
tools are increasingly being used to address team information needs. It is also
being recognized that it is this 'local' information that may be the most valuable,
in terms of driving the day-to-day activity of the organization.
Levels of Informations Need
Individual (Low Level) : At the lowest level the personal information need of
staff exists throughout the organization. Examples include correspondence,
reports and spreadsheets. In most organizations, staff must struggle with using
email to meet their information management needs. While staff generally
recognizes the inadequacy of e-mail, they have few other approaches or
technologies at their disposal.
Managing the Levels : While managing the information at each of the three
levels, consider aspects need consideration:
• An information management solution must be provided for staff at each of
the three levels.
For more detail: - http://www.gurukpo.com• If corporate solutions aren't provided,
then staff will find their own
solutions. This is the source of poor-quality intranet sub-sites, and other
undesirable approaches.
• A clear policy must be developed, outlining when and how it will apply at
all the three levels and how information should be managed at each level.
• Processes must be put in place to 'bubble up' or 'promote' information
from lower levels to higher levels. For example, some team-generated
information will be critical for the whole organization.
• As much as possible, a seamless information management environment
should be delivered that covers all the three levels.
Q.4 What do you understand by Information System? Discuss various type of
Information.
Ans.: A business has several information systems :
(A) Formal Information System
(B) Informal Information System
(C) Computer Based Information System
Formal Information System : It is based on organizational chart represented by
the organization.
Informal Information System : It is an employee based system designed to meet
personal and vocational needs and to help in the solution of work-related
problems. It also funnels information upward through indirect channels. It works
within the framework of the business and its stated policies.
Computer Based Information System (CBIS) : This category of information
system depends mainly on the computer for handling business application.
System analysis develops different types of information system to meet variety of
business needs. There is class of system known as collectively as computer based
information system. They can be classified as :

• Transaction Processing System (TPS)
• Management Information System(MIS)
• Decision Making System (DSS)
• Office Automation System (OAS)
For more detail: - http://www.gurukpo.comQ.5 What do you mean by Value of
Information?
Ans.: Dimensions of Information : There are three most common dimensions of
information for MIS :
(i) Economic Dimension : Economic dimension of information refers to the
cost of information and its benefits. Generation of information costs
money. Measuring cost and benefit of information is difficult because of
intangible characteristic of information.
Cost of Information : Cost of information may include: Cost of acquiring
data, Cost of maintaining data, Cost of generating information and Cost of
communication information. Cost related to the response time require to
generate information and communicating it. Thus, for system with low
response time, the cost is high. The cost is depends on accuracy, speed of
generation etc.
Value of Information : Information has a cost for its acquisition and
maintenance. Thus before a particular piece of information is acquired,
decision maker must know its value. The information has a perceived
value in terms of decision making. The decision maker feels more secured
when additional information is received in case of decision making under
uncertainty or risk.
Perfect Information : The information is called a Perfect Information, if it
wipes out uncertainty or risk completely. However, perfect information is
a myth.
The value of information is the value of the change in decision behavior
because of the information. The change in the behaviour due to new
information is measured to determine the benefit from its use. To arrive at
the value of information, the cost incurred to get this information is
deducted from the benefit.
Value of information = Cost to get information-benefit
Given a set of possible decisions, a decision maker will select one on the
basis of the available information. If the new information causes a change
in the decision, then the value of information is the difference in the value
between outcome of the old decision and that of new decision, less the cost
obtaining the new information. The value of the additional information
making the existing information perfect (VPI) is:
VPI = (V2 - V1) - (C2 - C1)
For more detail: - http://www.gurukpo.comWhere V is the value of the information
and C is the cost of obtaining the

information. V1 and C1 relate to one set of information V2, C2 relate to the
new set.
In MIS, the concept of the value of information is used to find out the
benefit of perfect information and if the value is significantly high, the
system should provide it. If the value is insignificant, it would not be
worth collecting the additional information.
(ii) Business Dimension : Different types of information are required by
managers at different levels of the management hierarchy. The
information needs of managers at strategic planning level are altogether
different that those of operational control managers. It is because of the
fact that managers at different levels are required to perform different
functions in an organization.
(iii) Technical Dimension : This dimension of information refers to the
technical aspects of the database. It includes the capacity of database,
response time, security, validity, data interrelationship etc.
Q.6 What is the difference between Data Processing and Information Processing?
Ans.: Data Processing : Data Processing is a process that converts data into
information or knowledge. The processing is usually assumed to be automated
and running on a computer. Because data are most useful when well-presented
and actually informative, data-processing systems are often referred to as
information systems to emphasize their practicality. Nevertheless, both terms are
roughly synonymous, performing similar conversions; data-processing systems
typically manipulate raw data into information, and likewise information
systems typically take raw data as input to produce information as output.
Data processing is that a business has collected numerous data concerning an
aspect of its operations and that this multitude of data must be presented in
meaningful, easy-to-access presentations for the managers who must then use
that information to increase revenue or to decrease cost. That conversion and
presentation of data as information is typically performed by a data-processing
application.
Information Processing : Information processing is the change or processing of
information in any manner detectable by an observer.
Information processing may more specifically be defined in terms by Claude E.
Shannon as the conversion of latent information into manifest information.
Latent and manifest information is defined through the terms of equivocation,
For more detail: - http://www.gurukpo.comremaining uncertainty, what value the
sender has actually chosen, dissipation
uncertainty of the sender what the receiver has actually received and
transformation saved effort of questioning - equivocation minus dissipation.
Practical Information Processing can be described as a cycle, where data which
may have no inherent meaning to the observer is converted into information,
which does have meaning to the observer.
Q.7 What are the different methods for Data Collection?

Ans.: Methods of Data and Information Collection : Several methods are available
for
the collection of data. The choice of method will have an impact on the quality of
information. Similarly the design of data collection method also decides the
quality of data and information.
Following are the methods of data collection :
i) Observation
ii) Experiment
iii) Survey
iv) Subjective Estimation
v) Transaction Processing
vi) Purchase from Outside
vii) Publication
viii) Government Agencies
□ □ □
Development of MIS
Q.1 What is MIS Planning? Discuss the need and objectives of MIS Planning.
OR
What are the objectives and need of MIS Planning?
Ans.: The plan for development and its implementation is a basic necessity for MIS.
In MIS the information is recognized as major resource like capital and time. If
this resource has to be managed well, it calls upon the management to plan for it
and control it, so that the information becomes a vital resource for the system.
The management information system needs good planning. This system should
deal with the management information not with data processing alone. It should
provide support for the management planning, decision making and action. It
should provide support to the changing needs of business management.
A long range MIS plan provides direction for the development of the system and
provides a basis for achieving the specific targets or tasks against time frame.
Following are the contents of MIS planning :
MIS Goals and Objectives : It is necessary to develop the goal and objectives for
the MIS which will support the business goals. The MIS goals and objectives will
consider management philosophy, policy constraints, Business risk, internal and
external environment of the organization and business. The goals and objectives
of the MIS would be so stated that they can be measured. The typical statements
of the goals can be providing online information on the stock and market; the
query processing should not exceed more than three seconds and the like.
Strategy for Plan Achievement : The designer has to take a number of strategic
decisions for the achievement of MIS goals and objectives. They are
a) Development Strategy : Ex. an online, batch , a real time.
b) System Development Strategy : Designer selects an approach to system
development like operational verses functional, accounting verses

analysis.
c) Resources for the Development : Designer has to select resources.
Resources ca be in-house verses external, customized or use of package.
d) Manpower Composition : The staff should have the staffs of an analyst,
and programmer.
For more detail: - http://www.gurukpo.comThe Architecture of MIS : The
architecture of the MIS plan provides a system
and subsystem structure and their input, output and linkage. It spells out in
details the subsystem from the data entry to processing, analysis to modeling and
storage to printing.
The System Development Schedule : A schedule is made for development of the
system. While preparing a schedule due consideration is given to importance of
the system in the overall information requirements. This development schedule is
to be weighed against the time scale for achieving certain information
requirements.
Hardware and Software Plan : Giving due regards to the technical and
operational feasibility, the economics of investment is worked out. Then the plan
of procurement is made after selecting the hardware and software. One can take
the phased approach of investing starting from the lower configuration of
hardware going to the higher as development take place. The process needs
matching the technical decisions with the financial decisions.
Q.2 What are the stages of Development of MIS?
Ans.: In order to develop a system successfully, it is managed by breaking the total
development process into smaller basic activities or phases. Any system
development process, in general, is understood to have the following phases :
i) Systems Planning
ii) Systems Analysis
iii) Systems Design
iv) Systems Implementation
v) Systems Operation and Support
Q.3 What are different approaches to Development of MIS?
Ans.: 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

For more detail: - http://www.gurukpo.comfirst 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
For more detail: - http://www.gurukpo.combe 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 for 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 expensive?
Q.4 Factors responsible for Development of MIS?
Ans.: Factors Responsible for the development of MIS are numerous and have been
a
prime concern for many Researchers and Practitioners. Both Inter and external
For more detail: - http://www.gurukpo.comfactors must be taken into account when
trying to understand and organization‟s
criteria for deciding about technology. The following are the factors which are
responsible for development of MIS :
1. External
2. Internal
External Factors : External Factors are conditions that exist in organization‟s
external environment. The factors can be found at the industry level or in

national policies.
(a) Industry level : At the industry level, we are looking at characteristics as
degree of diffusion of certain technologies, the availability of external
know-how, for example, technology suppliers, the degree of
innovativeness of the industry, the requirements imposed by major
customers and external markets and overall levels of competition and
technology sophistication in the industry.
(b) National Policies : For the external factors the national policies also affect
the organization that indirectly affects the subsystems of the organization.
Internal Factors : Internal factors internal of the firm that may affect the
development of MIS can be grouped into three categories:
i) Past Experience with Technology : The organizations past experience
about the technology in terms of exposure and organizational learning
ultimately affects its future in developing technology.
ii) Organizational Characteristics : An organization‟s characteristic like size,
influence the adoption of MIS application in organization. The adoption of
certain technologies may appear more appropriate for the larger firms
because of the large capital investments and the skilled human resources
involve in the implementation and operation of such technologies. Smaller
firms are less affected by organizational inertia and they show a greater
degree of involvement of organizational member‟s especially top
management during implementation. Ready to use software and less
expensive equipments of MIS application are more attractive to smaller
firms.
iii) Organizational Pursued strategy : Internal factors deal with the
organizations pursued strategy on both orientation and technology policy.
An organization‟s strategy reflects its action with market and technology,
which ultimately modify its experience and consequently its overall
characteristics and capabilities. The need for a strong technology has been
advocated by a number of authors and investments in MIS should
therefore be closely aligned with overall corporate strategy.
For more detail: - http://www.gurukpo.comOther Factors :
Customer Satisfaction : Development of MIS is affected by customer satisfaction.
Customer of the services should be satisfied by the presented system.
Effective : Development should be effective in terms of organizational benefit &
user satisfaction.
Efficient : Development should use all the resources, organization values
efficiently.
□ □ □
Database Management Systems
Q.1 What do you understand by Database Management System? What are its

objectives? Discuss the various elements of Database System.
Ans.: A database management system is a collection of interrelated data and a set of
program to access those data. The collection of data, usually referred to as the
“Database” contains information relevant to an enterprise. The primary goal of a
DBMS is to provide a way to store and retrieve database information that is both
convenient and efficient.
Database : An organization must have accurate and reliable data for effective
decision making. For this, the organization maintains records of various facts of
its operation by building appropriate models of the diverse classes of objects of
interest. The models capture the essential properties of the objects and records
relationship among them. Such related data is called “Database”
Objectives :
i) The users of the database establish their view of the data and its structure
without regards to the actual physical storage of the data.
ii) That the database establishes a uniform high level of accuracy and
consistency. Validation rules are applied by the DBMS.
iii) The data should be available for use by application and by queries.
iv) The data item prepared by one application are available to all applications
or queries. No data items are owned by an application.
v) The data base can be evolved according to application usage and query
needs.
Elements of DBMS : The elements of database management system are :
i) Database : Databases are banks and is an important constituent of any
information system. Data bank for computerized information is organized
in the form of a collection of file stored on secondary storage media. A file
is a collection of records for each entity in the system. The record being a
collection of data items representing the attributes of an entity.
For more detail: - http://www.gurukpo.comii) People : The people involved with the
database system can be divided into
2 groups: those who use the information system provided by the system
and those who design develop and manage the system itself.
iii) Database Planning and Design Technique : Since the database system
involves people from all parts of organization with variety of information
needs the development and operation of database system must be very
carefully planned and managed. The data must be carefully designed to
provide efficient excess to information required by different users.
iv) Computer Hardware and Software : Computer hardware and software for
DBMS are two different important elements of DBMS. They are
technological foundation of DBMS.
Q.2 What is Database Design? And objectives of Database Design?
Ans.: Database design is the process of designing the overall schema of database.
This
process is mainly divided in four phases: analysis phase, design phase refinement

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