Introduction to MIS :
Concept, Definition, Role of MIS: a support to Management, Management effectiveness and MIS, Basics of MIS, Decision making and MIS: concepts and process in decision making.
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INFORMATION MANAGEMENT
Five Main Resources:
A manager is required to manage five main types of resources effectively:
• Personnel
• Material
• Machines (including facilities and energy)
• Money
• Information (including data)
INTEREST IN INFORMATION MANAGEMENT
1. Increasing complexity of business activity
– International economy
Firms of all sizes are subject to economic influences that can originate anywhere in the world. Such influences can be seen in the relative values of the currencies of each nation, where purchases are made in those countries with the highest currency value.
– Worldwide competition
Competition exists on a worldwide scale. Its effects can be seen in the imports from foreign countries.
– Increasing complexity of technology
Technology is used everywhere in business. Examples are bar code scanners, computer based airline reservation systems, automated teller machines, factory robots ..etc.
Social constraints
Some products and services are found undesirable by society. Therefore,business decisions must be based on economic factors, but social costs and payoffs must be considered as well. Plant expansion, new products, new sales outlets and similar actions must all be weighed in terms of their environmental impact.
2. Improved computer capabilities
– Size
– Speed
Today’s users, have keyboard terminals or microcomputers in their offices.
Many of the micros are connected to other computers in a network and users
know how to use them.
WHO ARE THE INFORMATION USERS?
• Managers
The idea of using the computer as a management information system was a breakthrough because it recognized managers’ need for problem solving information. Embracing the MIS concept made several firms develop applications specifically aimed at management support.
• Non-managers
Non-manages and staff specialists also use the MIS output.
• Persons & organizations in the firm’s environment
Users outside the company benefit from the MIS as well. They can be customers receiving invoices, stockholders getting dividend checks, and the federal government checking tax reports.
Management Levels
Strategic Planning Level
The strategic planning level involves mangers at the top of the organizational hierarchy. The term strategic indicates the long-term impact of top managers’ decisions on the entire organization. The term executive is often used to describe a manager on the strategic planning level.
Management Control Level
Middle-level managers include regional managers, product directors, and division heads. Their level is called “management control level” due to their responsibility of putting plans into action and ensuring the accomplishment of goals.
Operational Control Level
Lower level managers are persons responsible for carrying out the plans specified by managers on upper levels. Their level is called the “operational control level” because this is where the firm’s operations occur.
Influence of Management Level on Information Source and Form
When designing information systems, it is important to consider the manager’s level. Such levels can influence both the source of information and how it is presented. Managers on the strategic level lace greater emphasis on environmental information than do managers on the lower levels. Managers on the operational control level regard internal information as vital. The second figure shows that strategic planning-level managers prefer information in a summary format, whereas operational control-level managers prefer detail.
Business Areas
Managers are found in various business areas of the firm. The three traditional business areas are marketing, manufacturing, and finance in addition to other two areas that have gained major importance-human resources and information services.
What managers do ?
According the French management theorist, Henri Fayol, managers perform five major functions.
· They plan what they are to do
· They organize to meet the plan.
· They staff their organization with the necessary resources.
· They direct the available resources to execute the plan.
· Finally, they control the resources, keeping them on course.
All managers perform these functions, however with varying emphasis as shown below.
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