MANAGEMENT INFORMATION SYSTEM

Assignment

( May 21, 2011)

EXERCISE 1

1. Give three (3) definitions of management information system. Cite authors

and references. Compare the information concerns of strategic level vs.
The tactical level of management.

 A computer system designed to help manager, plan and direct business

and organization operation.( Webster dictionary )

 A management information system (MIS) is a system that provides

information system to manage organizations effectively. Management
information systems involves three primary resources ;technology,
information and people (Collins dictionary)

 One of the function of management is decision making sound decision

making helps attain organization goals. An organized approach to the
study of the information needs of an organization's management at every
level in making operational, tactical, and strategic decisions. Its objective
is to design and implement procedures, processes, and routines that
provide suitably detailed reports in an accurate, consistent, and timely
manner.In a management information system, modern, computerized
systems continuously gather relevant data, both from inside and outside
an organization. This data is then processed, integrated, and stored in a
centralized database (or data warehouse) where it is constantly updated
and made available to all who have the authority to access it, in a form
that suits their purpose.( Alfred Sarkissian)

 MIS –is a formal method of making available to management the accurate

timely information necessary to facilitate the decision making process
enable the organizational planning, control operational functions to be
carried out effectively ( James A.F.Stoner
Comparisaon of strategic level vs. Tactical level of management

Strategic management concentrates on the performance of the complete

organization. The focus here is to determine the most appropriate objectives that the
organization should pursue given its internal strengths and weaknesses as well as the
external opportunities and threats faced by it.Strategic management involves achieving
balance between requirements of different functions and units of the organizations. It
also involves balancing risks in short and long term. Based on these considerations
strategic management determines long term objectives to be pursued by the
organization and identifies the ways and means of achieving these objectives. One
unique characteristic of strategic management is the absence of any higher level plans
or objectives to guide strategic management action.

Futhermore strategic management deals with the major intended and emergent
initiatives taken by general managers on behalf of owners involving utilization of
resources to enhance to performance of firms in their external environmental. It entails
specifying the organization mission, vision and objectives, development policies and
plans often in terms of project and program which are designed to achieved objectives,
and then allocating resources to implement the policies, plans, projects and programs.
Strategic level of information concentrates on the performance of the complete
organization.

Tactical and operation management-lies at the end of the continuum of

management levels. It is concerned ensuring that the day to day operations of
organization are carried out effectively and efficiently. For example, operation
management will concentrate on ensuring that workmen on the shop floor are instructed
correctly on the jobs to be performed by them at any particular time and that they
provided with required material, tools and other facilities to get on with the work. This
level of management is concerned with planning and control for individual organizational
function such as marketing, production and HRD, or sub function within them, for
improving performance in short or medium term.

In short the difference between strategic and tactical levels, is that strategic
levefines “ What “ IS TO BE DONE but tactics defines “ HOW”. TO IMPLEMENT is
strategy. Tactical management allows the managers to select appropriate tactics for
achieving the objectives and tactical decisions are made by lower management level or
teams.

2. Discuss three (3) example of operation support system

  Transaction processing-a type of information system to collect, store,
modify and retrieve the transaction of the organization. A transaction that
generates od modifies data that is eventually stores in an information
system. TPS must be consistent with its own rules. If errors occur in it the
transaction on either side then transaction will fail. Isolating transaction
means that other process never see information during the transmission.
They may see information before or after the transaction, but not during
the transaction. Ex. NSO; BIR; Bureau of Customs

 Process control –this involves the collection of information about the

system, process, person or group of people in order to make necessary
decisions about the operations .Managers set up control system that
consist of four key areas. These includes establishment of standards to
measure performance, measureactual performance, compare with
performance with standards. Ex. Instrumentation and Control Engineer-
sets the control of temperature.fluid flow in a system and pressure
systems.

 Office Automation- the use of computer system to execute a variety of

office operation, such as word processing, accounting and e-mail. Office
automation almost always implies a network of computers with a variety
of available programs. A varied computer machinery and software used
to digitally create, collect and store, manipulate and relay office
information needed for accomplishing basic task, raw data storage,
electronic transfer and the management of electronic business
information comprise the basic activities of office automation help in
optimizing or automation existing office procedure.Ex. Microsoft Word,
Excel, Power Point, Autocad.

Three activities in an information system produce the information that organization need
to make decisions, control operation, analyze problems, and create new products or
services. These activities are input, processing, and output. Input captures or
collects raw data from within the organization or from its external environment.
Processing converts this raw data input into a more meaningful form. Output
transfers the processed information to the people who will use it or to activities for
which it will be used. Information system also requires feedback, which is output that
is returned to approprieta members of the organization to help them evaluate or correct
the input stage.
 3. Differentiate the decision support system from the expert system

Decision Support System: An organization coordinates work through a

structured hierarchy and formal, standard operating procedures. The hierarchy
arranges people in a pyramid structure of rising authority and responsibility. The
upper levels of the hierarchy consist of managerial, professional, and technical
employees while from the expert system: An organizations require many
different kinds of skills and people. In addition to managers ,knowledge workers (
such as engineers, architects, or scientist) design products or service and
create new knowledge, whereas the lower levels consist of operational personnel
like data workers ( such as secretaries, bookkeepers, or clerk ) process the
organization’s paperwork. Production or service workers ( such as machinist,
assemblers, or packers ) actually the organization products or service.

4. Describe and give example of transaction processing system in terms of

data gathered and inputted and transaction records generated.

1. Supermaket
2. Banks
3. Airlines
4. Insurance

Supermarket check-out counters ring up millions of pieces of data such as

production identification numbers or the cost of each item sold. Such pieces of data can
be totalled and analyzed to provide meaningful information such as the total number of
bottles of dish detergent sold at particular store, which brands of dish detergent were
selling the most rapidly at the store or sales territory, or the total amount spent on that
brand of dish detergent at that store or sales region. Another example , terminals are
found in many retails products. What bar code readers do in the supermarket. The
supermarket checker moves the grocery product’s bar code, past the bar code reader,
which reads it with a light beam and sensor. The description of the item, which is stored
in the computer system, is sent to the POS terminal, where it is printed out as a receipt
for the customer. The information from the POS terminal is also used by the store, on
the one hand, for accounting purposes and, on the other hand, for restocking store
inventory and for analyzing which products sell better than others.
On Banks, Hotels, Airlines, and Insurance: We have seen that entering data into the
computer is a major steps in the computer processing cycle. Once the data are
processed, some form of output information is expected. Example: The customer
approaches teller window and wants to make a deposit. The teller counts the cash,
inserts the deposit slip in the machine, bring up the customer’s account on the screen,
and enters the amount of deposit. The computer then credits the customer’s checking
account and generates one form of output for documentation or reference. Payment can
be done also thru Electronic funds transfer (EFT) which enables banks to handle
customer transaction around the clock at electronic speed. The technology handles pay
by phone, direct payroll and automated teller machine or ATM. An ATM mounted on
the wall of bank and how it works.