October 2, 2021

INTRODUCTION The natures and scopes of information required by managers and different levels in an organization vary considerably. Organization required different types of information system to meet their needs. The fields of information system have come a long way in last few decades. An increasing no of managerial personnel rely on computers and information systems to make decisions. Managers at different levels in an organization make different kind of decision (Operational, tactical and strategic). So, that the types of information necessary to support their decision are also different. Accordingly different types of information systems are designed to meet various information needs of managers. There are four types of information systems exist: 1. Transaction processing system(TPS) 2. Management information system(MIS) 3. Intelligent support systems(ISS) consisting of decisions support systems (DSS), executive information systems(EIS)and expert systems(ES) 4. Office automation system(OAS) 2.2. TRANSACTION PROCESSING SYSTEM The main purpose of transition processing system is to records, process validates & store transition death takes place in various function area of a business for future retrieval of use. • Transaction can be internal or external. When a department order office supplies from the purchasing department an internal transaction occurs. • When a customer places an order for a product an external transition occurs. • This processing system is various used in this organization such as finance accounting, manufacturing, production human resources, marketing, Engineer quality control and resource and development. Steps in Processing a Transaction Data must be processed to become use full information .There are following 6 steps in processing a transaction. 1. Data entry 2. Data validation 3. Processing & revalidation 4. Storage 5. Output generation 6. Query support Data entry: Transaction data must first be enter in to the system .A number of input devices exist for entering data including the key board & the mouse. The document generated at the source where the transaction occurs are called source document & becomes input data for the system. Example: when a customer returns an item at a stored the sales receipt becomes the source document for the transaction return item for returned for replacement. Data validation: Data validation is essential in transaction processing. It ensures the accuracy & reliability of data by comparing actual data with predetermine standard or known results. There are 2 steps in validation. (1)Error detection. (2) Error correction. Error detection- Checking the data for appropriate format, checking for missing data, invalid data & inconsistence data. Error correction- Error correction procedures are design to ensure that all have been corrected & that no errors have been introduced during the process. The technique used for correcting the error depends on the type of errors and the nature of the application. Data Processing and revaluation: After the validation of accuracy & reliability of data, the data are processed in following 2 modes Online transition processing. Batch processing. Online transition processing: Online means that the data input device directly linked to the TPS. The data are directly process as soon as it is entered to the system. In this system the information is always no time lag between data creation &data processing. Ex- ATM Batch processing : In batch processing, transactions are accumulated over time & Processed periodically. Processing may be done in a daily, weekly, monthly basis or any other time period appropriate to the given application. e.g.-an organisation may process its sale proceeds on daily basis at the end of each day, and its daily expenses on a monthly basis. Data storage. Data storage is another important function because the values of usefulness of data diminish if data are not properly stored. E.g. magnetic tap is obtain use to store data i.e. batch processed. However, online transaction. Processing release on other type of storage media, such as magnetic disk. It is to be noted that storage in output not always occurs in the same order. One can output the result of the transaction to the decision maker and then store them, or store the result and then output then to the decision maker.  Output generation. The output can be communicated to the decision maker, after the data are input, validated, processed, revalidated, & stored, in the following 2 ways: • Documents and reports • Forms (screens and panels) Documents are popular output method. Some Examples: Invoices, pay checks, purchase invoices, sales receipts & job orders. A document is usually a record of one transaction, where as a report is a summary of two or more transactions. Nevertheless, these terms are obtained interchangeable. Computer o/p can also appear or computer screens & panels. Such soft-copy presentations are known as forms. Query support. (asking questions) It is facilities allow users to access data and information that may otherwise not be readily available.

COMPUTER BASED INFORMATION SYSTEMS Mangers make decisions to solve problems and information is used in making the decisions. Information is presented in both oral and written forms by an information processor. It contains each of the computer based application areas:-Accounting Information System (AIS), Management Information System (MIS), Decision Support System (DSS), Office Automation (OA) and Expert System (ES). The term computer based information system (CBIS) is used to describe the five subsystems that utilize the computer.  All of the CBIS sub-system provides information for problem solving. Each CBIS subsystem can support quality management. These are external customers that exist outside the firm. Information services interfaces with these external customers by means of the AIS. Much of the external customer’s perception of the firm is based on the capabilities of the AIS to execute orders promptly and accurately. Hence, information system has a direct influence on the firm’s product and service quality. IS also provides an indirect influence by providing information to users inside the firm. These are internal customers and they exist on all organizational levels and in all functional areas. The information enables these internal customers to do their jobs better, resulting in better products and services. In addition, the standard financial reports produced by AIS, such as the income statement and cost analyses, serve as a scorecard of the quality effort, reporting cost of rework, scarp customer returns, warranty claims and so on. Fig. shows each of these subsystems which provide information to be used in quality management.  

APPROACHES OF MIS DEVELOPMENT There are seven types of approaches used for developing MIS 1. Top down approaches: This approach developed a corporate plan as a guide for designing the information system. Here top management takes the lead in formulating objectives, policies and plans and communicates them down the line to middle and supervisory management for translating them into reality. 2. Bottom up approaches: It consists of following five steps: a. Individual functional applications are planned separately consisting of transition processing, updating of files and simple reports. b. Files of various functional applications are integrated by means of indexing and changing into a database. c. Various functions are added to operate on the database and management control level. d. Integration of models into a model base having a wide verity of analysis, decision and planning models. e. Strategic planning data planning models are added to the information system. 3. Integrative approaches: This approach permits managers at all levels to influence the design of MIS. Here evaluation, modification and approval of top management continue till a final design is acceptable to all levels. 4. Traditional approaches: In this case activities are performed in sequence. Each activity is undertaken only when the previous activity is completed. Managers and users consider and review the work performed the MIS professionals during each stage of processing, in order to ensure accuracy and completeness. 5. Prototyping approaches: In order to avoid any possible delay, prototyping approach is used. It is to developed a small or pilot version is called a prototype, which is built quickly and at lesser cost with the intention of modifying it when need arises. 6. End-user development approaches: In this approach the increasing availability of low cost technology, end user development is popular in many organizations. Here the end user is responsible for system development. 7. Systematic approach for development in small organizations: Since fewer MIS professionals shall be working having with variety of responsibilities that they have little time to develop new system for users. In a very small organization, no MIS professional will exit. This does not mean that they cannot develop management information systems. They develop systems using the following steps: Identify requirements Locate, evaluate and secure software development. Locate, evaluate and secure hardware. Implement the systems. CONSTRAINTS IN DEVELOPING AN MIS Following are the constraints in developing an effective MIS: 1. No management system to build upon. 2. No clear definition of mission and purpose. 3. No objectives for the company. 4. Misorganisation. 5. Communication gap. 6. Lack of management participation. MIS AND USE OF COMPUTER Following are the main advantages of using computer technology in MIS: 1 .Expanding scope for using system 2. Enhancing speed of processing and retrieval of data 3. Widening the scope of analysis. 4. Increasing complexity of system design and operation. 5. Integrating different information sub systems. 6. Increasing the effectiveness of information system. 7. Extending more comprehensive information to business managers. LIMITATIONS OF MIS The limitations of MIS 1. MIS cannot replace managerial judgment in decision making. It is merely effective tool for the managers in decision making problem solving. 2. The quality of output of MIS is directly proportional to the quality of input and processes. 3. MIS cannot provide tailor made information packages. It is required to analyze the available information before decision making. 4. In a fast changing and complex environments, MIS may not have enough flexibility to update itself quickly. 5. MIS takes only quantitative factors into account. 6. MIS is less useful for making non programmed decisions. 7. MIS is less effective in organizations where information is not being shared with others. 8. MIS is less effective due to frequent changes in top management, organizational structure and operational staff.

         INFORMATION NEEDS AND ITS ECONOMICS The availability of information to management at various levels has improved due to three reasons. These are 1. Development of telecommunications: The information flow has been accelerated with developments in communication technology like radio telephony, microwave communication, laser communication and satellite communication. 2. Processing of data with computer: The accessibility of information has been considerably improved as a computer can readily scan the available stored data to provide the required information. 3. Video technology: Video technology permits the recording of activities on video cassettes and video discs. Information Classification The information obtained and used in the organisations can be classified into five categories: 1. Action vs. non-action information: The information lying unnoticed is called non action information but the same information when processed and used in some context by the recipient is called action information. 2. Recurring vs. non recurring information: Information which is generated at regular intervals of time is called recurring information. A particular type of information which is arrived at through some special kind of study and which helps in management decision is called non recurring information. 3. Documentary vs. non documentary information: Information which is available in some document form that is either in some written form or on microfilms, magnetic tapes, floppy discs etc is called documentary information. All other information is categorized as non documentary 4. Internal vs. external information: The distinction is obvious. Managers at different hierarchies in the organization require different combinations of internal and external information. 5. Historical information vs. future projections: Here again the distinction is obvious because historical information would be futile unless it can be used for future projection. SYSTEMS APPROACH The system approach to a business organization implies a wholistic approach to the study of inter-relationships of sub-systems of an organization in view of the objectives set by the organization. Thus, this requires an integrated approach which could reduce the conflict among different sub-systems and modify the objectives of these sub-systems in order to arrive at an optimum solution to the problems which may arise in the achievement of the main objectives or in the working of the whole system. Classification of systems The various types of systems are: Conceptual and empirical systems: The conceptual system is concerned with theoretical structures which may or may not have any counterpart in the real world. Examples of such systems are economic theory, organization theory, general system of relativity etc. Empirical systems are concrete operational systems made up of people, materials, machines, energy, and other physical things. Other systems such as electrical, thermal and chemical are also fall into this category. 1. Natural and man-made systems: The examples of natural systems are: human body, solar system, etc. Examples of man-made systems are: Transportation system, communication system, education system, business organization etc. 2. Social system: A system made up of people may be taken as a social system, such as business organizations, government agencies, political parties, social clubs, professional societies etc. 3. Man-machine system: Most empirical systems fall into the category of man-machine systems. One of the examples of this system is aeroplane. 4. Open and closed systems: An open system continually interacts with its environment. This type of system can adapt to changing internal and environmental conditions. Every social and business organization is open because it reacts with its unpredictable environment A closed systems one of that does not interact with its environment. This system does not change or if it does then a barrier exists between the system and the environment top revent the system from being affected.

MANAGEMENT INFORMATION SYSYEM The MIS is an integrated man machine system that provides information to support the planning and control functions of managers in an organization . Management Management has been viewed as be function, a process, a profession and a class of people. It refers to the kind of task and activities that are perform by managers. The specific nature of the activities is determined by such managerial functions as planning, organizing, directing, leadership and controlling. 1. Planning: It is the process of deciding in advance the courses of action to be followed and when and how to undertake these. Its objectives in the best possible manner and for anticipating future opportunities and problems. 2. Organising: It is formal grouping of people and activities to facilitate achievement of the farm’s objectives. It is need for assigning responsibilities, jobs and hierarchy among personnel. 3. Controlling: It is the checking the progress of plans and correcting any deviations that may occur along the way. 4. Directing: It is the process of activating the plans, structure and group efforts desired direction. It is needed for implementation of plans by providing desired leadership motivation and proper communication. The management can be group into 3 hierarchical levels – • Top or Strategic management • Middle or Tactical management • Junior or Operational management Top Management: – It is establishes the policies, plans, objectives and budget framework under which various departments will operate of the organisation. Middle Management: – It has the responsibility of implementing the policies and overall plans of the top management. Junior Management:-It has the responsibility of implementing day to day operations and decisions of the middle management to produce goods and services to meet the revenue, profit and other goals.  Information Information is the result or product of processing data. Information can be defined as the data which is organized and presented at a time and place so that the decision-maker may take necessary act. Information consists of data that has been retrieved, processed or otherwise used, for informative or inferential purposes, arguments or as a basis for forecasting.  For example, some supporting documents, ledgers and so on, which comprise source material for profit and loss statements may be used by the decision maker for profit planning and control. System A system is a group of elements or components joined together to fulfil certain functions. A system is made up of sub-system. The systems are either natural or man-made. A sub-system which may be composed of further sub-systems. A subsystem itself is part of a super system. The given example is that of an industrial (or factory) system. It has various subsystems such as production subsystem, marketing sub-system, personnel sub-system and financial subsystem. These sub systems in turn are composed of further subsystem. For example a production subsystem could consist of sub-sub-system of production control, material control, quality control etc. The material sub-sub-system can be further broken down into ‘black boxes’ such as purchasing, stores, transportation, inspection etc. This industrial system is a part of the large economic system of the country which may be called as the super system.