Management Information System

Management Information System can be defined as a communication process wherein information is recorded, stored, processed and retrieved for decision regarding the managerial process of planning, organizing and controlling If we now defined decision-making as the process of selecting from among alternatives a course of action to achieve in objective the link between information and decision becomes clear. Indeed, decision-making and information processing are so inter-dependent that they become inseparable, if not identical, in practice.

Computerized MIS cannot technically make a decision but it can yield processed data and follow instructions to the extent of its capacity. For example, the computer can be properly instructed to compare inventory levels with programmed decision-rules on re-order level and re-order quantity, and generate purchase requisition, purchase enquiry and purchase order. This can resemble an automatic control of purchase documents.

The modern role of MIS for managerial decision-making in a complex organization has been compared to that of a military commander. Commanders often adopt a strategy built by direct observation of partial situations. This is the style used by the managers who track operations by periodic communications with remote sales depots, plant divisions and other offices. In a modern complex organization, the levels of information handling can be divided as decision support system, management information system, transaction processing system, and office (and other) automation system.

At the apex, the top level mangers may need decision support system (DSS). This would be an inter-active system that provides the user-manager with easy access to decision models and data in order to support semi-structured and non-structured decision-making tasks. Inputs for DSS can be some processed data and mostly management-originated data along with some unique models. The DSS would involve queries and responses, operations research models and simulation. The output from DSS would be special reports to resolve difficult questions and replies to management queries.

At the middle management level (if there exists one), MIS would deal with an organized set of procedures to provide information for middle managers to support their operations and decision-making within the origination. At this level, inputs for MIS would be both processed and raw-data and some management-originated data, along with preprogrammed models. The MIS process would involve report generator, data management, simple models and statistical methods. The outputs from MIS would be filtered and screened for semi-routine decisions and replies to simple management queries.

At the shop-floor management level, (if there exists one), MIS would deal with an organized set of procedures to provide information for middle managers to support their operations and decisions-making within the organization. At this level, inputs for MIS would be both processed and raw-data and some management-originated data, along with preprogrammed models. The MIS process would involve report generatior data management, simple models and statistical methods. The outputs from MIS would be filtered and screened for semi-routine decisions and replies to simple management queries.

At the shop-floor management level, transaction processing system (TPS) is a computer-based system that would capture, classify, store, maintain, update and retrieve simple transaction data for record keeping and for feeding MIS and DSS. The TPS would have transaction data as inputs. The processing for TPS would involve classification, codification, sorting, merging, adding, deleting and updating. Outputs for TPS would be detailed reports relating to routine decisions and processed data.

At the clerical level, office and other automation control system can be in operation. Office automation system (OAS) is simple is an automated office having multiple functions, where the integrated and computer-aided system allows many office activities to be performed with electronic equipment. The OAS would be inputs such as appointments, documents addresses, etc. The OAS processing would be scheduling word-processor, data storage and retrieval. Outputs from OAS would be schedules, memoranda, bulk mail and administrative reports.
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